The Governor of Lagos State, Babajide Sanwo-Olu, has asked the Corporate Affairs Commission (CAC) to make it easier for new and small businesses to register. He wants this because many startups might find it hard to pay the registration fees.
The Governor made this request on Thursday when the Registrar-General of CAC, Mr. Hussaini Magaji, visited him in Alausa, Ikeja.
This request is important because Point of Sale (PoS) operators are struggling to meet the July 7, 2024 registration deadline set by the CAC.
Sanwo-Olu, who was represented by his Deputy, Dr. Obafemi Hamzat, suggested that the CAC could use a model similar to the state tax card. This model helps the government manage infrastructure needs without making it hard for businesses to operate.
The Governor also said the state government is ready to work with the CAC to make sure businesses can register smoothly. He thinks more people need to know that registering with the CAC is not hard.
Enforcing PoS Operators’ Registration
The Registrar-General of CAC said the commission wants to make sure all PoS operators are registered. He mentioned that PoS owners could register with CAC from anywhere in Nigeria.
He said the commission is ready to work with the state government to set a fair registration fee for small businesses.
On the other hand, the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) recently said the mandatory registration is just a way to make more money for the government.
The National General Secretary of the group, Oluwasegun Elegbede, said that the CAC’s claim that registration will fight PoS crime is false. He explained that the types of crimes happening through PoS cannot be stopped just by registration.
AMMBAN strongly disagrees with the CAC’s directive that all PoS agents must register, whether they are individuals or not. They believe this rule is not needed, goes against existing laws, and is just a way to take more money from Nigerians.
They also said, “We disagree with the CAC’s claim that it wants to fight crimes in the agency banking business space through registration. We believe that the kind of crimes in the space are both human and technical, which CAC registration cannot fight.”
The Backstory
In May, the CAC announced that PoS agents for major fintechs in Nigeria, like OPay, Palmpay, and Moniepoint, must register their business by July 7, 2024.
The Registrar-General of the CAC, Hussaini Magaji, said this was the agreement with the PoS operators after a meeting in Abuja.
He mentioned that the registrations are required by law and follow the directives of the Central Bank of Nigeria (CBN).
He added that the action is supported 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 main goal of registration is to protect the businesses of fintechs and their customers and to strengthen the economy.