The Corporate Affairs Commission (CAC) is processing around 15,000 applications daily, even on weekends, for its fintech regularisation program. This initiative is part of the commission’s efforts to ensure proper regulation of the growing fintech and agent banking industries in Nigeria. Addressing concerns regarding name search availability, the CAC recently clarified that reports questioning its operations were unfounded and aimed at tarnishing the commission’s reputation.
The CAC emphasized that each application submitted for fintech regularisation is carefully assessed based on merit by its approving officers. In response to increasing demand from the fintech sector, the commission has launched a special registration portal and provided Application Programming Interfaces (APIs) to enable fintechs to register agents, merchants, and other individuals using their platforms. This initiative aims to streamline the registration process and enhance transparency.
CAC’s Directive on PoS Agents’ Registration and Industry Concerns
In May, Hussaini Magaji, the Registrar-General of the CAC, issued a mandate requiring Point of Sale (PoS) agents of major fintech companies to register their businesses by July 7, 2024. This directive aligns with the legal requirements stipulated by the Central Bank of Nigeria (CBN) and aims to protect businesses in the sector. Magaji noted that the action was supported by relevant sections in the Companies and Allied Matters Act (CAMA) 2020 and the 2013 CBN guidelines on agent banking.
While the CAC stands by this mandate, the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) has voiced concerns, suggesting that the move could be a precursor to increased taxation. The group argued that registration is not legally mandatory for PoS agents, many of whom are individuals, and cited sections of CAMA to back this stance. They also expressed concerns that the registration process could add unnecessary financial burdens to operators.
Despite these concerns, the CAC maintains that the registration timeline was discussed and agreed upon with representatives of PoS agents. However, reports indicate growing dissatisfaction among some PoS operators, particularly those in the Federal Capital Territory (FCT), regarding the CAC’s registration directive. While the CAC continues to push for compliance, it is clear that the mandate is generating mixed reactions within the industry.
In summary, the CAC’s efforts to regulate the fintech sector through application processing and PoS agent registration reflect its commitment to improving the industry. However, the concerns raised by PoS agents and other stakeholders highlight the need for careful consideration of the impact of these regulatory changes on all parties involved.
