CAC’s Registration Mandate for POS Operators: A Threat to Small Businesses – Financial Expert

 

Financial expert Mr. Fasasi Atanda has raised concerns about the Corporate Affairs Commission's (CAC) new requirement for 'Point of Sale' (POS) agents in Nigeria to register. Atanda, the National President of the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN), argues this mandate will burden small businesses. He highlighted the vital role POS agents play in underserved areas, facilitating financial transactions where traditional banking is limited.

Existing Regulatory Framework

Atanda noted that POS agents are already regulated through financial institutions, with their data managed by entities like MoniePoint and the Nigerian Interbank Settlement System (NIBSS). The new CAC requirement, he says, is redundant and imposes additional financial and administrative burdens without effectively addressing fraud concerns.

Legal Challenge and Economic Impact

AMMBAN is taking legal action against the mandate, arguing it unfairly targets small business owners and could stifle economic growth. The POS and FinTech sectors are key drivers of Nigeria’s economy, attracting significant foreign investment and creating jobs. Policies that hinder this growth could have adverse effects on financial inclusion and economic development.

Call for Collaborative Solutions

Atanda urged policymakers to engage stakeholders to support innovation and growth while guarding against fraud. Collaborative efforts between regulators and industry participants are essential for balancing oversight with the need to foster a thriving financial sector.