The Corporate Affairs Commission (CAC) of Nigeria has taken a significant step to enhance the regulatory framework of the financial technology sector by requiring all Point of Sales (PoS) agents associated with major fintech companies to register their businesses. Announced on Monday by Hussaini Magaji, the Registrar-General of the CAC, this mandate follows a constructive dialogue with PoS operators in the nation’s capital, Abuja.
Highlighting the essence of this directive, Magaji noted that the registration process is in strict alignment with the legal stipulations and the directives of the Central Bank of Nigeria (CBN). This initiative, he clarified, is not aimed at pinpointing any specific groups or individuals but is rather designed to fortify the operational integrity and safety of businesses within this domain. In a move to facilitate compliance, the commission has set a deadline for registration until July 7, 2024.
This regulatory action is supported by the legal framework set forth in Section 863, Subsection 1 of the Companies and Allied Matters Act (CAMA) 2020, alongside the CBN’s 2013 guidelines on agent banking. The move is a part of the government’s broader strategy to ensure that the burgeoning fintech sector operates within a structured and legally compliant environment.
Tokoni Peter, serving as the special adviser to President Bola Tinubu on ICT development and innovation, has expressed his support for this initiative. He assured that efforts would be made to streamline the registration process, aligning with the government’s Renewed Hope Initiative. The announcement was well-received within the fintech community, with several industry leaders committing to work alongside the commission to ensure a smooth transition to the new regulatory standards.
This development marks a pivotal moment for Nigeria’s fintech industry, aiming to bolster business security and reinforce consumer confidence through enhanced regulatory practices.
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Last modified: May 10, 2024
