The Federal Government has pledged that security agencies will take action against Point-of-Sale (PoS) operators who do not comply with the directive to register with the Corporate Affairs Commission by July 7, 2024.

Hussaini Magaji, the Registrar-General of the CAC, announced this during the formal launch of the CAC registration for agents and fintech merchants in Abuja on Wednesday, May 9, 2024.

This initiative comes after the federal government mandated the nationwide registration of PoS operators, citing the potential to reduce kidnapping and aid security agencies in apprehending recipients of ransom payments from kidnap victims.

Authorities to go against unregistered PoS operators

During the event, Hussaini reaffirmed the government's commitment to complete the implementation of the mandate by establishing a fully digitized service centre for seamless registration.

According to Punch, Magaji emphasized that the timeline was not aimed at singling out particular groups or individuals but was genuinely intended to protect businesses. Additionally, he warned that those who fail to register by the deadline would be treated as criminals.

He 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 being chased by the security agencies already.”

He detailed the advantages of registration, highlighting that it extends beyond taxation to include access to loans, legal status, and compliance with regulatory standards.

Banks, PoS losses to fraud

Although PoS machines have brought significant convenience to financial transactions in Nigeria, numerous individuals in the country have fallen prey to fraudulent activities.

Legit.ng earlier reported that the Nigeria Inter-Bank Settlement System had revealed that banks and PoS operators suffered N17.67 billion in losses due to fraud in 2023.

According to the fraud report, PoS terminals contributed 26.37% of fraud incidents in 2023. It added that over 1.9 million PoS terminals are deployed by merchants and individuals across the country.