The Association of Mobile Money and Bank Agents in Nigeria has taken legal action against the Corporate Affairs Commission over its directive requiring Point of Sale operators to register their activities, which ended on Thursday, September 5, 2024.

With the deadline for registration ending today, AMMBAN is challenging the CAC’s directive in court, arguing that it is unfair and potentially harmful to their businesses.

Confirming this with The PUNCH, the National General Secretary, AMMBAN, Oluwasegun Elegbede, argued that the registration requirements imposed by CAC, violated the provision of the Companies and Allied Matters Act, Laws of the Federation of Nigeria, 2004, which “explicitly states that the commission has no jurisdiction over individuals not operating as a company.

“According to section 863(1) of the Companies and Allied Matters Act, 2004, the order to enforce CAC directive on individual PoS agents operating under their name is wrong and will be challenged, as it contravenes the Companies and Allied Matters Act, Laws of the Federation of Nigeria, 2004, which explicitly states that CAC has no jurisdiction over individuals not operating as a company.

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“The matter is already in court and the court has scheduled this September for hearing. The court will have to intervene in the interpretation of the quoted section of the CAMA if individuals operating as a sub-agent (likened to a bank branch) must register with CAC,” Elegbede added.

Speaking on the concerns raised by CAC, Elegbede said fighting crime was beyond the jurisdiction of CAC, adding that AMMBAN, in collaboration with law enforcement agencies, is curbing the prevalence of fraud in the industry.

“Every POS operator has a BVN/NIN, so they are all traceable. We can trace them through NIBSS, as no operator can have a POS without NIBSS knowing. We can trace them with their SIM cards.

“We can also trace them to the company/bank that issued the POS machine to them. So, there is no hiding place for operators, if they default,” he added.

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The national secretary emphasised the critical role that mobile money agents play in driving financial inclusion across Nigeria, particularly in rural areas where traditional banking services are scarce.

Speaking on the impact of the registration on members, he asserted that CAC registration cost nothing less than N35,000, adding that, some of their members do not even have that figure as capital.

“These are young people trying to make a living for themselves. Imposing N35,000 on them could potentially cripple the operations of many small-scale agents across the country.

“While we understand the need for regulation, it is essential that such measures do not stifle the growth of the sector or place undue burdens on small business owners. We are confident that the court will recognize the merit in our case,” he stated.

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On his part, The National Vice President Association of Mobile Money and Bank Agents in Nigeria, Dr Obioha Oti, said CAC’s deadline was null and void.

He said, “Today September 5, 2024, is the deadline, that their deadline is null and void, they cannot do anything.”

Recall that the Federal Government through the Corporate Affairs Commission had issued a two-month registration deadline for POS companies, to register their agents, merchants, and individuals with the commission in line with legal requirements and the directives of the Central Bank of Nigeria.

This new directive came against the backdrop of frequent fraud incidents involving POS terminals and plans to stop trading in cryptocurrency or any virtual currency by the CBN.

According to a report by the Nigeria Inter-Bank Settlement System (NIBSS) Plc, POS terminals accounted for 26.37 per cent of fraud incidents in 2023, according to fraud. CAC said the move would curb fraud in the system, kidnapping, and payment of ransoms.

Commercial transporters in Ilorin, Kwara State capital on Thursday stopped all operations to protest the high cost of petrol for their business.

Okada riders, tricyclists and other intra-city commercial transporters were forced off the road by their aggrieved members who complained bitterly about the high cost of fuel.

The transporters, frustrated with the high cost of fuel, which now sells between  N1,100 and N1,200 per liter, aganst the official price of  N895 announced by the NNPC, took to the streets to expess their grievances.

The action of the aggrieved transporters which started at about 7:00 am, forced some filling stations in Ilorin to halt sales due to the fear that their facilities could be attacked and razed down.

As a result of the development, many commuters who were stranded had to trek some kilometers to their destinations but private motorists were allowed to move freely.

In a bid to prevent potential looting, some commercial shops owners in the state capital closed their businesse.

As of press time, efforts to reach the spokesperson of the state Police Command, DSP Ejire Adeyemi Toun, were not successful at the time of filing this report.

Dangote Refinery has clarified that NNPC Limited is yet to commence the lifting of petrol at the facility as both parties are still negotiating terms.

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Group Chief Branding and Communications Officer, Dangote Group, Anthony Chiejina in a statement on Thursday said the company is not in a position to determine the price of petrol as the sector is regulated.

He faulted media report that NNPC has commenced the lifting of petrol from the refinery.

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“We would like to state that NNPC has not commenced lifting of refined Premium Motor Spirit (PMS), commonly known as petrol, from our Dangote Petroleum Refinery.

“Therefore, the issue of fixing the price of petrol lifted from our refinery does not arise, as we are yet to finalize our contract with NNPC.

“The PMS market is strictly regulated, which is known to all oil marketers and stakeholders in the sector, hence we can not determine, fix, or influence the product price, which falls under the purview of relevant government authorities”.

He urged the public to disregard the reports “as it is misleading and does not represent the true position in this matter.

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“We are guaranteeing Nigerians of exceptionally high quality petroleum products that will be readily available all over the country.”

Meanwhile, NNPC Limited has disclosed that over 17.6 million barrels of crude oil will be delivered to Dangote Petroleum Refinery between September and October.

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Speaking in a national television programme on Thursday, Executive Vice-President, Downstream, NNPC, Adedapo Segun, said the move is part of the federal government’s push to drive local production of petroleum products.

“We have supplied about 30 million barrels to Dangote so far. Six-point-three million this month, and we will supply 11.3 million in October,” he added.