The Nigerian government has announced a mandatory registration requirement for Point-of-Sales (PoS) operators across the country. This initiative, set to begin on May 8th, 2024 with a deadline of July 7th, aims to combat fraud, strengthen security, and improve the overall financial landscape.
Key Points of the New Policy:
- Reduced Fraud and Crime: The government believes mandatory registration will make it harder for criminals to misuse PoS terminals. By requiring PoS operators to register with the Corporate Affairs Commission (CAC), authorities can track down individuals and businesses involved in fraudulent activities. This transparency could significantly reduce incidents like ransom payments being made through PoS terminals.
- Enhanced Security: Registration will allow authorities to gather crucial information about PoS operators, including photos and other relevant details. This data will be readily available to security agencies investigating financial crimes, potentially leading to faster arrests and prosecutions.
- Improved Regulatory Compliance: The Central Bank of Nigeria (CBN) has long mandated that individual and business entities involved in financial transactions be registered in its database. This new policy aligns with those directives, ensuring better regulatory compliance within the financial sector.
- Benefits Beyond Crime Prevention: Registration offers benefits beyond just security. It grants PoS operators access to loans, establishes business legitimacy, and ensures adherence to regulatory requirements.
Government Efforts and PoS Operator Reactions:
The government is committed to making the registration process smooth and efficient. They have launched a 24-hour service centre staffed with dedicated personnel to handle enquiries and expedite approvals. This commitment highlights the importance they place on this initiative.
However, PoS operator reactions have been mixed. While some acknowledge the potential benefits for security and business growth, others express concerns. Here’s a breakdown of the different perspectives:
- Supportive Voices: Some PoS operators, like Victor Olojo, a former president of the Association of Mobile Money and Bank Agents in Nigeria, see this as a positive step towards standardization and improved security. Proper registration can weed out unqualified operators and allow legitimate businesses to flourish.
- Concerns from Rural Operators: Others, particularly those in rural areas, worry about the registration process being complex and expensive. Ogunfowokan Temitope, a PoS operator in Lagos, highlights the financial strain it might place on operators with limited resources.
- Impact on Financial Inclusion: The National President of the Association of Mobile Money and Bank Agents in Nigeria, Sarafa Fasasi, raises concerns about the potential impact on financial inclusion. He questions if eliminating unregistered sub-agents, who play a significant role in reaching remote areas, could hinder financial accessibility.
Looking Forward:
The mandatory registration of PoS operators represents a significant shift in the Nigerian financial landscape. While challenges and concerns remain, the potential benefits for security, transparency, and business growth are undeniable. The success of this policy will depend on the government’s ability to address concerns, provide adequate support to PoS operators, and ensure a smooth registration process.
