See why Palmpay, Opay, other banks will block customers bank account from July 7

• Nigerian banks and fintech companies are set to block the accounts of PoS operators who fail to register their businesses
• The CAC directed that PoS operators must register and submit their details, although it has been met with pushback
• The banks are now warning that failure to comply with the CAC registration requirement will result in account freezing

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

Nigerian banks and Fintech companies are set to block accounts of Point of Sale (PoS) operators yet to register their businesses with the Corporate Affairs Commission (CAC) before July 7, 2024.

PoS operators are to lose accounts from July 7 without CAC registration. Photo credit: Pius Utomi Ekpei
Source: Getty Images

CAC POS registration directive

Legit.ng earlier reported that the Central Bank of Nigeria, in a memo issued on April 30, 2024, directed all non-individuals on the Agent Banking Authorization to immediately take steps to register their businesses with the CAC in line with Section 863 of the Companies and Allied Matters Act (CAMA) 2020.

The directive made it mandatory for PoS terminals whether as agents, merchants or individuals, to register with CAC before commencement of business.

Following up on the CBN announcement, CAC released a statement titled ‘‘Enforcement of Compliance with CBN Directive on Registration Before Onboarding’ demanding that banks ensure registration on or before July 7, 2024.

Part of the statement reads:

"“The Registrar-General therefore enjoined the banks to ensure maximum compliance with the requirements of the law to ensure economic growth."

Palmpay sends a message to customers

With a few days left to the deadline, Palmpay, one of the fintech companies, has instructed POS operators in its network to comply with the directives.

According to Umuteme Enakeno, Head of Marketing and Communication at PalmPay, failure to comply will result in accounts being frozen after the deadline.

He said:

“PalmPay fully supports the CAC’s directive. To provide a seamless experience for our customers, we have integrated the registration portal with our Business App. "Ensure that all necessary documents and information are provided accurately before submitting their applications."Customers must update their PalmPay Accounts with business details whenever they get the certificate to reflect their new corporate status."We urge all PalmPay Business customers to submit or register their CAC before the deadline. Failure to do so means that the account would be frozen."

POS operators not happy with CAC

In a related development, Legit.ng reported that PoS operators have disclosed plans to take legal action against the Corporate Affairs Commission in court over its registration directives.

The operators say the CAC has no powers to mandate them to register their businesses as they can operate as individual agents.

Source: Legit.ng