CAC Tightens Noose on Fintechs, Sets Deadline to Register Agents, Merchants

James Emejo in Abuja

The Corporate Affairs Commission (CAC) and Financial Technology Companies including Point of Sale (PoS) operators, have agreed to a two-month’ timeline to register the latter’s agents, merchants, and individuals with the commission.

The move, which is in line with the legal requirements and the directives of the Central Bank of Nigeria (CBN), aimed at safeguarding the businesses of fintech’s customers as well as strengthen the economy.

The agreement was reached today during a meeting between Registrar-General/Chief Executive, CAC, Mr.  Hussaini Ishaq Magaji, and fintechs.

He stressed that the action was backed by Section 863, Subsection 1 of the Companies and Allied Matters Act (CAMA) 2020 as well as the 2013 CBN guidelines on agent banking. 

He said the timeline for the registration, which will expire on July 7, 2024, was not targeted at any groups or individuals but genuinely aimed at providing protection for businesses. 

THISDAY further gathered that the move seeks to curb the increasing exposure of these payment channels to fraud perpetrated annually.

The CAC estimates that about N1.9 billion is lost to PoS-related fraud with over 10,000 reported cases.