The Association of Mobile Money and Bank Agents in Nigeria (AMMBAN), umbrella body for Point of sale (PoS) operators in the country have announced plans plans to sue the Corporate Affairs Commission (CAC) over mandatory registration requirements.
On May 6, CAC and financial technology (fintechs) companies agreed to a two-month timeline to register their agents, merchants, and individuals with the commission.
CAC said the deadline for registration is set for July 7.
According to the Commission, the action is equally backed by Section 863 (1) of the Companies and Allied Matters Act, (CAMA) 2020, as well as the 2013 Central Bank of Nigeria (CBN) guidelines on agent banking.
The Commission said the registration aims to safeguard the businesses of fintechs and customers, as well as strengthen the economy.
National General S ecretary of AMMBAN, Elegbede Oluwasegun in an interview with TheCable on Tuesday said PoS operators have decided to take legal action to challenge the legality of the directive.
Citing two major sections of the CBN policy and CAMA to back AMMBAN’s position, Oluwasegun said CAC has no jurisdiction over individuals not operating as a company.
“There are two differences where we have advised our agents appropriately regarding their position in the ongoing issues. Even though it was not made public, we are advising our members accordingly to ascertain where they stand as the policy is concerned and we cited two major sections of the CBN policy and CAMA to back our position,” Oluwasegun said.
“For CAC, when they said all PoS agents should… but as an individual agent, you are not requested to register with CAC if you are using your name.
“In CAMA, only a non-individual agent is required to register with CAC. For example, if your name is John Doe, you are not liable for CAC registration and you can get the reference from CAMA 2022, section 18 (2).”
Oluwasegun said the CBN policy recognises both individual and non-individual agents.
According to the secretary, an individual agent operating under their personal name is a legitimate entity for conducting business in Nigeria, beyond just PoS operations.
“A provision store operating as ‘Iya Seun’ store, not registered, is not bound by the law to go and register their business so long they are not a business name. Same with our kind of business, and that is our position,” Oluwasegun said.
He said that as law-abiding citizens, the association will go to court to determine the legal basis of CAC’s directive.
Oluwasegun, however, clarified that AMMBAN is not seeking confrontation with the commission but wants to test the legality of its order.
