The Association of Mobile Money and Bank Agents in Nigeria, led by its National President, Fasasi Sarafadeen, has announced plans to take legal action against the Corporate Affairs Commission (CAC) over the mandatory registration directive imposed on its members.
Sarafadeen criticized the directive, asserting that it contravenes the Companies and Allied Matters Act, 2004, which explicitly excludes jurisdiction over individuals not operating as companies. He emphasized that only non-individual agents, such as those operating under registered business names, fall within the purview of CAC registration requirements.
He clarified that individual Point-of-Sale (PoS) agents, operating under their names, are not subject to CAC registration. Sarafadeen highlighted the distinction between individual and non-individual agents, urging the CAC to focus on regulating the latter category, which comprises businesses operating under registered or unregistered names.
Regarding sub-agents, Sarafadeen explained that they are independent branches of registered companies and should not be treated as individual entities requiring separate registration.
Expressing concern over the potential impact on job creation and financial inclusion, Sarafadeen urged President Bola Ahmed Tinubu and relevant government bodies to intervene. He emphasized the need to prioritize policies that foster entrepreneurship and curb unemployment, aligning with the government’s agenda for economic revitalization.
The Federal Government, through the CAC, had mandated registration for PoS companies and their agents, citing security concerns such as kidnapping and ransom payments. However, Sarafadeen argued that such measures overlook the broader challenges faced by registered businesses in Nigeria, which experience high failure rates and contribute to rising unemployment.
Despite the looming deadline for registration, PoS operators remain adamant in challenging the CAC’s directive, underscoring their commitment to protecting the interests of their members and promoting a conducive business environment.
With over 1.9 million PoS terminals deployed nationwide, the outcome of this legal dispute could have significant implications for the financial services sector and the broader economy.
