The Corporate Affairs Commission has informed Point of Sale businesses across Nigeria that the business registration deadline, which was originally scheduled on July 7, 2024, expired on September 5, 2024.
In a statement issued on Friday, the CAC voiced concern about insufficient compliance with the directive, despite the country’s vast number of PoS operators.
However, the CAC praised operators who have taken steps to legalize their firms, citing their “positive attitudes” toward compliance.
The Commission expressed concern about the large number of operators who have not followed the directive.
The statement read, “Recalcitrant operators have refused to adhere to the advice for formalization due possibly to engagements in unwholesome activities or for some reasons best known to them.”
The CAC stated that it is collaborating with law enforcement authorities and other relevant parties to develop a comprehensive enforcement and penalty mechanism.
Non-compliant firms may be forced to close, as well as face serious legal consequences.
“We are to make it clear that the Commission is working with Law Enforcement Agencies and other relevant stakeholders to deploy comprehensive enforcement and sanction framework that may include not only possible shutdown but other severe legal consequences,” the statement read.
The Federal Government, through the Corporate Affairs Commission, had earlier given a two-month deadline for POS operators to register their agents, merchants, and people with the commission in accordance with legal requirements and Central Bank of Nigeria guidelines.
This directive was issued in response to an increase in POS terminal fraud cases and the CBN’s plans to outlaw the trade of cryptocurrencies and other virtual currencies.
According to the CAC, the registration initiative attempts to eliminate fraud in the system while also combating kidnapping and ransom payments.
