Why POS operators must be registered — CAC Boss

The Registrar-General of the Corporate Affairs Commission (CAC), Hussaini Magaji, has disclosed why POS operators must be registered.

Speaking at the official launch of the CAC registration of fintech agents and merchants in Abuja on Wednesday, 8th May 2024, Magaji highlighted the government’s commitment to digitising services for easy registration.

Magaji explained that mandatory registration will help curb crime and fraudulent activities, as the commission will maintain a database that can be accessed by security agencies to identify individuals involved in criminal activities.

He, however, underscored that the registration requirement is in line with legal obligations and directives from the Central Bank of Nigeria (CBN) mandating the inclusion of individuals, merchants, or business entities in its database.

Magaji cited instances where criminals have used POS terminals for ransom payments and other fraudulent activities, noting that with registration, the commission can provide vital information to the government about the individuals behind such activities.

He emphasised that after the registration deadline, the commission will pursue defaulters, working with security agencies to apprehend those engaged in criminal activities.

He said, “Of course, the mandatory registration will reduce crime and fraudulent practices, the commission is hosting data and if any crime is committed anywhere, the security agencies would have to reach us to know the people behind the company and the fraudsters. But if they are not registered, we can’t do anything and that’s the essence of the registration.

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“We have had a situation where a ransom is being paid with a PoS terminal and a lot of fraud but after the registration, if anything happens we can provide the details of the persons behind the company to the government. We will capture the picture and other relevant information and this is a good development for the country.”

He further said,  “After the deadline, we would go after defaulters. If you have been identified as a criminal, security agents will go after you. We will go after them because some are already being chased by the security agencies.”

Beyond reducing crime, Magaji pointed out that registration offers other benefits such as access to loans, legal recognition, and compliance with regulatory requirements.

He reiterated that the law mandates any person or entity conducting business activities in Nigeria to register with the CAC, whether as an individual or an agent, to ensure the legitimacy of their business operations.