CAC attending to over 15,000 applications daily for its fintech regularisation program

The Corporate Affairs Commission (CAC) has stated that it is treating no less than 15,000 applications daily, including on weekends, for its fintech regularisation program. 

The commission stated in a public notice on ease of doing business while disregarding misleading claims made in the media about its services with respect to name search availability. It noted that the reports were false and aimed at discrediting the image of the organisation.  

On its effort to regularise the fintech and agent banking industry, the commission stated that its approving officers are treating each application based on its merit.  

It stated, “The General Public may recall that in line with the provisions of Section 863(1) of the Companies and Allied Matters, CAMA 2020, and the CBN guidelines for Agent Banking, 2013, the Commission commenced the regularisation of all Fintechs in the country.” 

“In view of the set deadline for the regularisation of the Fintechs, the Commission is unprecedentedly treating no less than 15,000 applications per day (weekends inclusive), and its hardworking approving officers are working assiduously to treat applications based on their merits.” 

Furthermore, the commission noted that it has granted APIs and created a special registration portal to fintechs for them to register their agents, merchants and other individuals using their platforms.  

Backstory  

In May, the Registrar-General of the CAC, Hussaini Magaji, stated that Point of Sales (PoS) agents of major fintech companies in Nigeria, including OPay, Palmpay, and Moniepoint, must register their businesses by July 7, 2024.  

• He emphasized that this registration aligns with legal requirements and the directives of the Central Bank of Nigeria (CBN). Magaji clarified that the timeline is not targeted at any specific groups or individuals but is intended to protect businesses.  

• He also highlighted that this action is supported by Section 863, Subsection 1 of the Companies and Allied Matters Act (CAMA) 2020 and the 2013 CBN guidelines on agent banking. 

However, the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) claims that the recent mandate for PoS operators to register is an attempt to increase taxation for revenue generation.  

• The group argued that many PoS agents are individuals, and registration is not legally mandatory for them. AMMBAN cites Section 18(1) of CAMA, stating that “a person may apply to the Commission for the registration of a company,” and Section 22(1), which emphasizes that “a company shall be deemed a separate legal entity from its members.” 

Although, the CAC stated that the registration timeline was agreed upon with representatives of the PoS agents. However, reports indicate that some PoS operators, particularly in the Federal Capital Territory (FCT), are dissatisfied with the CAC’s registration directive.