The Federal Government has announced a compulsory registration process for Point-of-Sale (PoS) operators nationwide, aiming to curb kidnapping and facilitate the apprehension of ransom recipients. Failure to comply with the directive by July 7, 2024, will result in security agencies taking action against non-compliant PoS operators.
Speaking at the formal launch of the Corporate Affairs Commission’s (CAC) registration of fintech agents and merchants in Abuja, Registrar-General Hussaini Magaji emphasized the importance of the initiative in enhancing security and strengthening the economy.
The government’s decision, backed by legal provisions and Central Bank of Nigeria (CBN) directives, intends to address fraudulent activities associated with PoS terminals, which accounted for a significant percentage of fraud incidents in 2023.
In line with the CBN’s measures, major fintech firms have suspended new customer onboarding and warned against trading in cryptocurrency or virtual currency.
Magaji highlighted the significance of mandatory registration in reducing crime, enhancing payment security, and ensuring business legitimacy. He emphasized that registered businesses gain access to various benefits, including loans and compliance with regulatory requirements.
The 60-day registration deadline underscores the government’s commitment to prompt action, with plans to pursue defaulters rigorously. Magaji assured stakeholders of a fully digitized service center to facilitate registration and address inquiries promptly.
However, PoS operators have expressed mixed reactions to the directive. While some acknowledge its potential benefits for standardization and security, others raise concerns about the financial burden and procedural challenges, particularly for operators in rural areas.
Despite varying opinions, the government remains steadfast in its pursuit of regulatory measures to safeguard financial transactions and enhance transparency in the PoS business landscape. With over 1.9 million PoS terminals deployed nationwide, the registration initiative signals a significant step towards achieving these objectives.
