Nigeria’s PoS operators raise concern over ‘cyber security’ charges

• Backs new policy on Fintech, PoS agent corporate registration

Kwara Association of Professional Point of Sales Agent (KAPPSA) has expressed its approval of the federal government’s directive requiring banks and fintech companies in Nigeria to ensure corporate registration for all their agents and operators.

This move has been welcomed by KAPPSA, emphasizing its alignment with the association’s efforts to collaborate with relevant agencies in enhancing the integrity of the money transfer ecosystem.

However, alongside their endorsement of the corporate registration policy, KAPPSA has raised concerns regarding the newly introduced 0.5 percent cyber security levy on monetary transactions.

The association has highlighted the potential strain that this levy could place on point of sales (PoS) operations across the country.

In a joint statement signed by KAPPSA’s President, Mr. Ridwan Opakunle, and Secretary, Olatunji Kayode, the association reiterated its commitment to promoting registration among PoS operators, emphasizing the importance of maintaining a comprehensive membership database.

KAPPSA has engaged with various agencies such as the EFCC, CAC, NSCDC, and the Nigerian Police in a sensitization campaign since late last year.

The Central Bank of Nigeria (CBN) and the Corporate Affairs Commission (CAC) have set a two-month deadline for fintechs, including PoS operators, to register their agents, merchants, and individuals.

This regulatory timeline is aimed at ensuring compliance with legal requirements and CBN directives, ultimately safeguarding the interests of fintech customers and bolstering the economy.

Despite the well-intentioned objectives behind the cyber security levy and other charges mandated by the CBN, PoS agents have voiced apprehensions about the potential impact on their operations.

KAPPSA has underscored the integral role of PoS operations in the grassroots economy and expressed concerns that the levy could further burden their customers.

In light of these apprehensions, KAPPSA has urged the CBN to reevaluate the new charges, with a specific focus on protecting the vulnerable segments of the economy that they serve.

While the CBN has exempted certain items from the levy, there remains ambiguity regarding whether PoS operations are included in this exemption.

The CBN’s directive to banks to implement a 0.5 percent cybersecurity levy on all electronic transactions within the country, effective from May 6, underscores the importance of bolstering cybersecurity measures in the financial sector.

The levy is to be applied at the point of electronic transfer origination, deducted, and remitted by financial institutions, with the amount reflected in customers’ accounts under the designation ‘Cybersecurity Levy’.

As stakeholders navigate the evolving regulatory landscape, it is imperative for policymakers to engage with industry representatives such as KAPPSA to ensure that regulatory measures strike a balance between enhancing cybersecurity and supporting the sustainable operation of PoS agents.

Collaborative dialogue and a nuanced approach to regulatory frameworks will be essential in fostering a resilient and inclusive financial ecosystem in Nigeria.

For Diaspora Digital Media Updates click on Whatsapp, or Telegram. For eyewitness accounts/ reports/ articles, write to: citizenreports@diasporadigitalmedia.com. Follow us on X (Fomerly Twitter) or Facebook