The National President of the Association of Mobile Money and Bank Agents in Nigeria, Sarafadeen Fasasi, has criticized the Corporate Affairs Commission for what he calls an unlawful attempt to clamp down on members who have not registered with the commission.
This reaction follows the CAC’s firm reminder to Point-of-Sale operators across the country that the deadline for business registration, initially set for July 7, 2024, expired on September 5, 2024.
According to The PUNCH, in a statement released on Friday, the commission expressed its disappointment at the low compliance rate despite the substantial number of PoS operators.
However, the CAC commended operators who had complied, noting their “positive attitude” towards formalizing their businesses.
The commission also highlighted its concern about the many operators who have yet to comply with the directive.
The statement added, “Recalcitrant operators have refused to adhere to the advice for formalisation due possibly to engagements in unwholesome activities or for some reasons best known to them.”
The CAC reiterated that it is collaborating with law enforcement and other stakeholders to develop a robust enforcement strategy. The framework could include business shutdowns and other serious legal penalties for non-compliance.
“We are to make it clear that the commission is working with law enforcement agencies and other relevant stakeholders to deploy a comprehensive enforcement and sanction framework that may include not only possible shutdown but other severe legal consequences,” the statement further clarified.
The Federal Government, through the CAC, had previously issued a two-month deadline for PoS companies to register their agents, merchants, and individuals with the commission in line with legal requirements and Central Bank of Nigeria directives.
In response, Fasasi argued that the CAC had no authority to address fraud in the mobile money industry, urging members to disregard the commission’s warnings.
“What the CAC is doing is illegal; the case is in court. What they are trying to do is contempt of court and we are writing the court immediately to stop CAC from going ahead with its plan.
“We are writing the court and the CAC itself to call their attention to the issue of contempt of court because they don’t have the right to enforce anything and we are also writing all the security agencies.
“We have taken the CAC to court on this matter. So, it will be tantamount to contempt of court for the CAC to still be issuing this type of directive. All the parties in the case are expected to respect the court and maintain status quo until after the case is determined,” Fasasi stated.
