POS Operator to Increase Charges Over CAC directives, Cybersecurity levy

The CAC through the registrar-general and chief executive officer (CEO) Hussaini Magaji had issued a two-month registration deadline to PoS operators to register their agents, merchants, and individuals with the commission in line with legal requirements and the directives of the CBN.

Going by directives from the Central Bank of Nigeria (CBN) based on the cybersecurity levy, for PoS operators to register their agents, merchants, and individuals, it seems Nigerians would soon have to deal with increased charges from POS transactions.

This directive has however been met with protests from some operators who argued that it would drive up the charges payable by their customers.

Meanwhile, the CAC has launched a centre for the “bulk registration” of the operators, as Magaji, inaugurated the centre, located at the commission’s FCT Zone 5 office on Wednesday.

Speaking at the inauguration on Wednesday, Magaji stressed that the centre is meant to facilitate all requests from operators in the fintech industry that voluntarily submitted their agents and merchants for regularisation with the CAC.

In a tweet on its official X handle, the CAC quoted Magaji as saying the initiative aligns with President Bola Tinubu’s desire to ensure financial inclusion for the youth, as well as strengthen the fight against fraud, and financial and other crimes in the country.

“He therefore restated his resolve to ensure compliance with the provisions of Section 863 (1) of the Companies and Allied Matters, (CAMA) 2020, and the CBN guidelines for Agent Banking, 2013,” the post reads.

It would be recalled that the commission and financial technology firms (fintechs) recently had a meeting where an agreement to register POS agents was reached.

But the move to register POS operators was met with protests from some operators who argued that it would drive up the charges payable by their customers.

They also argued that the cost of the registration would deplete the profits in the business.

Some of the agents who spoke to the News Agency of Nigeria (NAN) in Abuja on Wednesday, said the registration which would require money would impact on transaction cost paid by customers.

According to an agent, Mr Kofi Kolawole, the registration would deplete the profits in the business, and it would also discourage people from entering the business.

“I know that this registration when actualised by our operators will increase the amount they charge us.

“This means that the cost we charge on each transaction will increase, so our customers will bear the cost,’’ he said.

Another PoS agent, Mr Clement Agbasi, said the directive negated the financial inclusion initiative of the CBN.

Agbasi said that directive would cause many customers to save their cash at home rather than being charged heavily for their online transactions.

“The PoS business was geared toward bringing the banks closer to the unbanked and making it easier for them.

“With all these charges including the 0.5 per cent cyber-security levy on customers, many people will be discouraged from putting their monies in banks,’’ he said.