The Corporate Affairs Commission (CAC) has issued a reminder to Point of Sale (PoS) operators throughout Nigeria regarding the expiration of the business registration deadline, which was initially set for July 7, 2024, and concluded on September 5, 2024.

In a statement released on Friday, the CAC expressed its concerns about the low level of compliance with this directive, despite the significant number of PoS operators in the nation.

The Commission acknowledged and praised those operators who have successfully formalized their businesses, commending their proactive approach to compliance.

However, it also highlighted the troubling number of operators who have failed to follow the directive.

The statement noted, “Some operators have chosen not to comply with the formalization advice, possibly due to involvement in illicit activities or other undisclosed reasons.”

The CAC reiterated its commitment to collaborating with law enforcement and other relevant parties to establish a robust enforcement and sanction framework.

This may involve shutting down non-compliant businesses and imposing other serious legal repercussions.

“We want to clarify that the Commission is actively working with Law Enforcement Agencies and other stakeholders to implement a comprehensive enforcement and sanction framework that could lead to shutdowns and other significant legal consequences,” the statement indicated.

Previously, the Federal Government, through the CAC, had set a two-month deadline for PoS operators to register their agents, merchants, and individuals in accordance with legal requirements and directives from the Central Bank of Nigeria.

This directive was a response to an increase in fraud incidents associated with PoS terminals and the CBN's intention to ban trading in cryptocurrencies and other virtual currencies.

A report from the Nigeria Inter-Bank Settlement System Plc indicated that PoS terminals were linked to 26.37 percent of fraud incidents in 2023.

The CAC stated that the registration initiative aims to reduce fraud within the system, as well as combat kidnapping and the payment of ransoms.