POS Operators Warn CAC Registration Threatens Financial Inclusion and Livelihoods in Nigeria
The directive from the Central Bank of Nigeria (CBN) mandating Point of Sale (POS) operators to register their businesses with the Corporate Affairs Commission (CAC) has drawn strong criticism from industry stakeholders. The Association of Mobile Money and Bank Agents in Nigeria (AMMBAN), through its National President Fasasi Atanda, has publicly declared this move an outright attack on financial inclusion and a significant threat to countless jobs across the nation. Speaking on Arise News The Morning Show, Atanda expressed deep concerns over the potential negative ramifications for millions of Nigerians.
The Vital Role of Agency Banking and Regulatory Misalignment
Mr. Atanda vehemently criticized the CBN’s attempt to impose CAC regulation on the mobile money and agency banking sector, arguing that the CAC lacks the requisite understanding of an industry it seeks to govern. He emphasized that what many perceive merely as ‘POS’ is, in reality, a robust industry crucial for financial inclusion, especially in a country where a significant portion of the population remains unbanked. With over 300 local government areas in Nigeria still lacking access to conventional bank branches, mobile money and POS agents serve as the primary conduits for financial services, facilitating essential transactions within the vast informal sector. This critical access point supports daily commerce and enables financial activities for communities otherwise left behind by traditional banking infrastructure. Atanda stressed that such a directive, if implemented without proper industry understanding, would have profound negative impacts on the very people it aims to serve, hindering progress towards broader financial access across the African continent.
The proposed registration requirement risks dismantling a system that has successfully bridged financial service gaps for millions. It could lead to the closure of numerous agent points, disempowering a segment of the population that relies heavily on these services for remittances, payments, and cash withdrawals. This not only threatens the livelihoods of thousands of agents but also jeopardizes the advancements made in extending financial reach to remote and underserved communities, potentially pushing many back into financial exclusion.
Keywords
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