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The Corporate Affairs Commission (CAC) has announced its intention to clamp down on Point of Sale (POS) operators, also referred to as Fintech operators, following the expiration of its September 5, 2024, deadline for mandatory registration. Operators who have failed to comply with the registration directive risk being shut down.
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In July, the CAC issued a directive requiring POS operators to register their businesses as formal entities. However, the commission expressed disappointment in a recent statement, citing low compliance rates despite the large number of POS operators across the country.
“We want to make it clear that the Commission is collaborating with law enforcement agencies and other relevant stakeholders to implement a comprehensive enforcement and sanction framework. This may result not only in the shutdown of non-compliant businesses but also in severe legal consequences,” the CAC warned.
Established under the Companies and Allied Matters Act (CAMA) of 1990, the CAC is responsible for regulating the formation, incorporation, and management of companies in Nigeria. The commission alleged that some operators’ refusal to register might be linked to illicit activities or other undisclosed reasons.
The CAC had previously extended the deadline by 60 days, pushing it to September 5, 2024, from the initial deadline of July 7, 2024. Non-compliant operators now face imminent action as the deadline has passed.
