Nigeria mandates 1.9 million Point of Sale (PoS) agents to register with the Corporate Affairs Commission (CAC) to curb rising fraud incidents, which accounted for 26.37% of cases in 2023.
This directive aims to enhance transparency in financial transactions and improve regulatory oversight in the fintech industry
Nigeria, in a bid to enhance transparency and curb increasing fraud, now requires its 1.9 million Point of Sale (PoS) agents to register with the Corporate Affairs Commission (CAC).
The move follows a surge in fraud incidents involving PoS terminals, which accounted for 26.37% of fraud cases in 2023, as reported by the Nigeria Inter-Bank Settlement System Plc (NIBSS).
Previously, fintech firms such as Moniepoint, OPay, and PalmPay facilitated agent onboarding without stringent registration requirements.
However, the new directive imposes business registration obligations, potentially complicating the onboarding process due to the tedious nature of business registration in Nigeria.
Acknowledging the challenges, Moniepoint has initiated integrations to enable businesses to apply for CAC registration directly through their app, streamlining the process for over 2 million small businesses.
Competitors like PalmPay have followed suit, forging partnerships with CAC to facilitate the registration of hundreds of thousands of businesses.
While the mandate aims to improve transparency and reduce fraud, it poses challenges for fintech startups in maintaining a seamless onboarding process for PoS agents.
With business registration becoming a prerequisite, the landscape of agent banking in Nigeria undergoes significant shifts, impacting both the fintech industry and small retailers reliant on PoS terminals for additional income streams.