To curb the use of banking agents popularly known as POS operators for fraud and ransom collection in the country, the Corporate Affairs Commission (CAC) had earlier this year issued a two-month registration deadline for POS companies, to register their agents, merchants, and individuals with the commission in line with legal requirements and the directives of the Central Bank of Nigeria (CBN).
According to report by the Nigeria Inter-Bank Settlement System (NIBSS) Plc, POS terminals accounted for 26.37 per cent of fraud incidents in 2023, according to a fraud. CAC said the move would curb fraud in the system, kidnapping and payment of ransoms.
From the initial deadline of July 7, the commission had extended it to September 5 “to give sufficient time to Operators particularly those in remote areas who might have encountered network challenges to so register and continue with their businesses.” The CAC stated in a statement.
Failure to comply by the end of the deadline, the commission noted will see the unregistered agents run the risk of losing such businesses and prosecution for aiding and abetting criminal activities. Whilst many of the financial services providers who issue the POS terminals have continued to urge their customers to register, some have had to block the account of the unregistered operators to avoid the wrath of the commission.
A POS operator, Akeem who uses a terminal provided by Opay, said he had been able to register through the financial service provider. He explained that he had been able to register online with the help of area coordinators sent by Opay at a sum of N19,000. The same procedure had applied for POS operators who are using the Moniepoint teminals.
An poultry products retailer in Lagos, Mrs Kemisola, speaking with Leadership said her financial services provider had blocked the terminal with her business name because she had not registered it with the CAC. However, she continues to use the terminal that is attached to her personal account.
“I use my personal account now. How much do I make form the sales that the government is requiring that I register. I got the POS because of the issues we faced last year during the cash scarcity and to make it easier for my customers to make payment without cash. I still pay charges on this POS and customers don’t want to pay the extra charges.
If they block the one of my personal account, I will just revert to collecting cash only because even transfers are not that reliable. There is fake alert and sometimes payment reverses when transfer is done.” She explained
