The operators of several Points of Sale in the Federal Capital have criticised the new order of the Corporate Affairs Commission, CAC, mandating them to register with the Commission.
These PoS operators had promised to top-up their service charges because of this directive.
Recall that the CAC had just recently, issued a two-month registration deadline on Monday, May 6, for PoS operators to register their businesses per the legal requirements of the Central Bank of Nigeria, CBN.
But in reacting to the directive, PoS Operators, had said during an interview with NAN on Wednesday, that the registration would require money, which would in turn, affect transaction costs for customers using their services. This simply meant that eventually, there would be a service charge increase.
The development came almost together with the recent 0.5% cybersecurity levy on all electronic transactions by the CBN.
What They’re Saying:
Mr Kofi Kolawole, a PoS agent, had lamented during the NAN interview that the registration would deplete the business’s profits and discourage people from entering the business.
He had said:
“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.”
Meanwhile, another operator, Mr Clement Agbasi had temarked that the directive invalidated the CBN’s financial inclusion initiative, and would force a lot of customers to save their cash at home rather than risk being charged heavily for online transactions.
“With all these charges, including the 0.5 per cent cyber-security levy on customers, many people will be discouraged from putting their money in banks,” Agbasi had said.
Why It Matters:
The resistance from POS operators against the new registration law can be attributed to several reasons:
- Financial reasons: The compulsory registration requirement imposes additional financial burdens on POS operators, as it means that they would pay for registration fees and other administrative costs. At the end of the day, these expenses add up and eat into their profits, killing any chances of profit that they might otherwise, have had.
- Financial Exclusion: The new directive contradicts the Central Bank of Nigeria’s financial inclusion initiative because it would dissuade certain customers from using electronic payment methods because of the higher transaction costs. People will now be forced to save in traditional ways and transact in that same way too, hence, destroying whatever progress made towards cashless and financial inclusion policy.
Bottom Line:
A re-assessment of the POS registration requirement will serve to prevent a crisis in the Nigerian financial sector
