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PoS Transactions Jump To N8tn – NIBSS Report

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The value of Point of Sale transactions in Nigeria has jumped 39 per cent to N8.03tn in 2022, according to data obtained from the Nigeria Interbank Settlement System.

The data showed that the aggregate PoS transactions between July 2020 and July 2021 were estimated at N5.77tn. However, between July 2021 and July 2022, the volume of transactions increased to N8.03tn, indicating a 39.16 per cent increase over the period.

PoS transactions increased from a total volume of 921.19 million between July 2020 and July 2021, to 1.20 billion from July 2021 to July 2022.

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According to the NIBSS, July 2022 alone recorded the highest number of PoS transactions registered at 2.067 million in just one month.

According to the Deputy President of the Lagos Chamber of Commerce and Industry (LCCI), Gabriel Idahosa, the primary factor responsible for the recorded value of PoS transactions was an increase in the supply of services and a strong market.

“First, the central bank approves payment services such as Momo Money from MTN and Smart Cash from Airtel.”

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He noted that the rise of fintech companies and the use of technology for awareness of this payment method were also major propellers.

“Then, you have a lot more fintech companies advertising payment services. Organisations are allowing payments on their platform. Now, power companies allow payment of electricity bills over PoS, and even some government services let you do that. All the schools, both primary and secondary, allow you to use PoS too. Also, the banks have been very aggressive in promoting their PoS services.”

Idahosa noted that the culture of cashless policy was also fast becoming a trend largely due to the lingering impact of the COVID-19 period.

“The culture of non-cash payment is catching up very fast. Even for the illiterate that ordinarily cannot use the service, the increasing offer of USSD service which you can do over your phone means that many people with cellphones can now make payment.

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“These were initially triggered by COVID-19 when people could not easily walk to the banks to cash. So, during that time, banks were partially closed for some time, and it became difficult. Those people who were not familiar with electronic payment options now began to learn it. And now, it is the preferred mode of payment.”

Commenting on the increase, an economist, Bismarck Rewane, said that the increment was influenced by technological advancement.

“There’s a shift from cash and cheques to electronic payment. That’s why there has been an increase. There is broadband penetration, more mobile phone subscribers, and Nigerians are becoming more internet-savvy. So, they are making payments electronically rather than going by brick and mortar.”

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A Senior Lecturer at Pan Atlantic University, Dr. Olusegun Vincent, further explained that the increase was inevitable due to inflation.

“Inflation is part of the surge. Prices of goods and services have gone up. Another major aspect is the issue of insecurity. People are being very careful. That’s why they adopt PoS because of the ease of payments. You will discover that if you don’t use PoS, you can’t get money. Most Automated Teller Machines are often running out of funds. So, nobody wants to waste time and they go to the merchant.”

He added that the national acceptance of electronic payment was a revolution, and the central bank never foresaw this amount of adoption.

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CAC To Cancel Certificates Of BDCs With Revoked Licences

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The Corporate Affairs Commission (CAC) has said it would cancel the certificates of incorporation of Bureaux De Change(BCDs) whose licences have been revoked by the Central Bank of Nigeria( CBN).

The Nation reported in February the CBN revoked the licences of 4,173 Bureau De Change operators over their failure to meet regulatory guidelines.

In a statement by its acting Director, Corporate Communications, Sidi Hakama, CBN explained that the regulatory provisions flouted include nonpayment of all necessary fees within the stipulated period.

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CBN said: “The affected institutions failed to observe at least one of the following regulatory provisions: Payment of all necessary fees, including licence renewal, within the stipulated period in line with the guidelines.

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“Rendition of returns in line with the guidelines; compliance with guidelines, directives, and circulars of the CBN, particularly Anti-Money Laundering, Countering the Financing of Terrorism and Counter-Proliferation Financing regulations.”

However, in line with the above directive by the CBN, the CAC in a notice on its website on Wednesday, said the certificates would be cancelled within three months if the affected companies do not change the names and objects of such companies.

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The general public is hereby informed that following the revocation of the operational licenses of 4,173 Bureau De Change companies by the Central Bank of Nigeria vide a Federal Republic of Nigeria Official Gazette (Vol. 111) No. 37 of February 27, 2024 for noncompliance with Regulatory Standards, the Corporate Affairs Commission in the exercise of its powers under section 8(1)(e) of the Companies and Allied Matters Act, 2020 advises these companies to within three months from the date of this publication, change the names and objects of such companies.

“Failure to change the names and objects within the stipulated time frame shall result in cancellation of certificate of incorporation and dissolution. It is to be noted that it is unlawful for a company whose certificate has been deemed dissolved to carry on business,” the CAC notice reads.

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FG Suspends Taxes On Maize, Wheat, Rice, Others

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The Federal Government has suspended duties, tariffs and taxes on some essential food items imported through land and sea borders.

Minister of Agriculture and Food Security, Abubakar Kyari, announced this at the National Press Centre, Abuja.

Kyari also said the Federal Government has also inaugurated the Renewed Hope National Livestock Transformation Implementation Committee to develop and implement policies that prioritize livestock development and align with the National Livestock Transformation Plan.

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He stated that the listed food items, which include maize, wheat, husked brown rice and cowpeas, will enjoy a 150-day Duty-Free Import Window.

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He added that the move is part of the Presidential Accelerated Stabilization and Advancement Plan, which is aimed at achieving food security and economic stability in the country.

According to him: “The Federal Government has announced a 150-day Duty-Free Import Window for Food Commodities, suspension of duties, tariffs and taxes for the importation of certain food commodities (through land and sea borders). These commodities include maize, husked brown rice, wheat and cowpeas.

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“Under this arrangement, imported food commodities will be subjected to a Recommended Retail Price (RRP).

“I am glad to reiterate that the Government’s position exemplifies standards that would not compromise the safety of the various food items for consumption.

“In addition to the importation by the private sector, the Federal Government will import 250,000MT of wheat and 250,000MT of maize. The imported food commodities in their semi-processed state will target supplies to the small-scale processors and millers across the country.”

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CAC Extends PoS Registration Deadline 

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The Corporate Affairs Commission has announced the approval to extend the mandatory Point of Sales agents, super agents and sole agents registration to September 5th, 2024.

The commission made the announcement in a statement signed by its management and posted on its Facebook page on Saturday, giving a 60-day extension.

It said the extension is to give sufficient time to operators particularly those in remote areas who might have encountered network challenges to so register and continue with their businesses.

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The statement read, “The Corporate Affairs Commission wishes to notify Fintech Operators also known as Point of Sales Operators that the initial deadline of 7th July 2024 given for the registration of sole Agents, Super Agents and Agents has been extended for sixty days beginning from 7th July 2024 to the 5th September 2024.

“This is to give sufficient time to Operators particularly those in remote areas who might have encountered network challenges to so register and continue with their businesses.”

It added operators who continue to disobey after the new deadline will risk losing their businesses and facing prosecution for assisting criminal activities.

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“Operators who fail or refuse to register at the end of the extended deadline run the risk of losing such businesses and prosecution for aiding and abetting criminal activities,” it said.

 

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