Point of Sale (PoS) operators, represented by the Nationwide President of the Association of Cell Cash and Monetary institution Brokers in Nigeria, Fasasi Sarafadeen, bear launched plans to disaster the legality of the well-known registration with the Corporate Affairs Commission (CAC).

Sarafadeencriticizedthe directive, arguing that it violates the provisions of the Corporations and Allied Matters Act (CAMA) of Nigeria.

In step with Sarafadeen, CAC has no jurisdiction over americans running as sole proprietors,as in opposition toregistered corporations.

He acknowledged: “In step with fragment 863(1) of the Corporations and Allied Matters Act, 2004, the mutter to place in power CAC directive on particular person PoS agents running below their name is unsuitable and could perchance fairbe challengedas it contravenes the Corporations and Allied Matters Act, Felony guidelines of the Federation of Nigeria, 2004, which explicitly states that CAC has no jurisdiction over americans now not running as a company.

“We can disaster it legally. The court docket will must intervene inthe interpretation ofthe quoted fragment of the CAMA if americans running as a sub-agent (likened to a bank branch) must register with CAC.

“CBN iscorrectno bother, the memo isconstructiveit exclusively applies to non-americans, unlike the Corporate Affairs Commission whogeneralised.

“We are in talks with the lawyer representing the affiliationalready,and a league of human rights lawyers whom we’re now not disclosing who they’re for now.”

Explainingthe categoriesheacknowledged that there were two categories of Point-of-Sale agents.

He explained, “CAMA exclusively mandates registration of americans running as a company. There are two categories of POS agents: americans and non-americans. Particular person agents operate below their names, similar to Musa Caroline or Abubakar Audu, andare veritably profiledwith financial institutions below their names.

“Non-particular person agents, on the many hand, operate below registered or unregistered industry names, similar to Wale Ventures or Johnson Enterprises. It is that this 2d class of agents that the Corporate Affairs Commission can put in power the legislation on, as they’re required to register their industry names by the legislation.“

Sarafadeen illustrious that sub-agents are fairbranches of a companyalready registered with the Corporate Affairs Commission.

In step with the AMMBAN boss, the CAC could perchance fair aloof focal levelits effortson addressing the high failure fee of registered agencies inNigeria,in desire to imposing regulations on particular person POS agents running below their names.

“CAC desires to be about how 50 per cent of registered agencies in Nigeria fail for the length of the first few years, resulting in rising unemployment yr-on-yr.

“Somewhat than embarking on insurance policies that will eradicate entrepreneurs, escalate unemployment, and reversethe positive aspects of financial inclusionin Nigeria,” he added.