The Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) has taken legal action against the Corporate Affairs Commission (CAC) over its directive mandating Point of Sale (POS) operators to register their activities by September 5, 2024.
AMMBAN argues that the directive, which affects individual POS agents, contradicts the Companies and Allied Matters Act (CAMA) and imposes unnecessary financial burdens on small-scale agents.
According to AMMBAN’s National General Secretary, Oluwasegun Elegbede, the CAC has no legal authority to enforce registration on individuals who are not operating as companies, and the matter is now before the court for interpretation.
Elegbede emphasized that the fight against fraud, a key reason for the CAC directive, can be effectively managed through existing systems. He noted that all POS operators are traceable through their BVN, NIN, and SIM cards, and that law enforcement agencies, in collaboration with AMMBAN, are already addressing fraud concerns.
He further stressed that mobile money agents play a critical role in promoting financial inclusion, especially in rural areas with limited banking infrastructure, and the registration fee of N35,000 could hinder many young entrepreneurs from continuing their operations.
In response to the CAC’s position, AMMBAN’s National Vice President, Dr. Obioha Oti, declared the September 5 deadline null and void. He reaffirmed the association’s commitment to challenging the directive in court, arguing that it could cripple the small-scale agents’ businesses.
The CAC’s directive was originally aimed at curbing the rising cases of fraud involving POS terminals, which accounted for 26.37% of fraud incidents in 2023, according to the Nigeria Inter-Bank Settlement System (NIBSS).