Fasasi Atanda, the National President of the Association of Mobile Money and Bank Agents of Nigeria (AMBAN), has called for the Corporate Affairs Commission (CAC) to focus on supporting businesses rather than merely registering them. Speaking on ARISE News, Atanda highlighted the CAC’s lack of understanding of the fintech industry and emphasized the need for regulatory policies that reflect the operational realities of these businesses.
Critique of CAC’s Understanding of Fintech Industry
Atanda pointed out that unlike traditional banks with physical branches, fintech companies operate through sub-agents who act as their branches. He criticized the CAC for failing to grasp this distinction and for implementing policies that do not align with the operational structures of fintech companies.
“There is a lot of misinformation about most of the policies. Registration is not a yardstick for fighting fraud. Many registered companies today are involved in fraud,” Atanda stated, emphasizing that simply registering a business does not guarantee its legitimacy or success.
High Failure Rate of Registered Businesses
He highlighted that out of the over 4.9 million businesses registered with the CAC, nearly 50% fail within five years. This statistic underscores the need for the CAC to prioritize the sustainability and support of businesses rather than focusing solely on registration.
“You can’t regulate what you don’t understand or are not part of. Almost 50 percent of all the businesses registered fail every five years. CAC’s priorities must be the establishment and availability of businesses, not just registration,” Atanda argued.
Disconnect Between Main Organizations and Sub-Agents
Atanda criticized the regulatory approach that creates a disconnect between a main organization and its sub-agents. He clarified that the law does not require agents operating under a business name to register separately.
“It’s not correct to say branches of GTB banks at a location should go and register likewise Monipoint or Opay to go and register with CAC. That is not what the law says,” he explained, stressing that the current regulations impose unnecessary burdens on sub-agents of fintech companies.
Impact on Small Businesses
Atanda highlighted the financial burden imposed by the new CAC regulations on small businesses, many of which operate with minimal working capital. He argued that the CAC’s requirements are pushing small business owners out of the market.
“CAC is trying to chase a lot of people out of jobs. The smallest of the agents are surviving with as low as N20,000 in terms of working capital, and you are asking them to come and pay over N15,000 to N20,000 for registration,” Atanda said.
Enforcement Tactics and Misinterpretation of CBN Memo
Atanda questioned the CAC’s enforcement tactics, noting that the Central Bank of Nigeria (CBN) memo requiring registration only applied to non-individual agents. He condemned the CAC for targeting individual POS operators and threatening them with police action by July 7th.
“The CBN memo that instructed agents to register is talking about non-individuals. So why is CAC enforcing people and threatening to send police after the POS operators by July 7?” Atanda asked.
Call for Clear Interpretation and Supportive Regulation
Atanda concluded by calling for a clear interpretation of the law concerning registration and urging the CAC to stop using police to harass individual POS operators. He reiterated that most agents seen outside are branches of fintech companies and not standalone individuals.
“We only want to seek a clear interpretation of the law concerning registration and stop CAC from sending police to harass innocent, jobless Nigerians outside. Most of those agents seen outside are branches of fintech companies, not just standing alone as individuals,” Atanda concluded.
Atanda’s statements underscore the need for regulatory bodies to develop a deeper understanding of the industries they regulate and to create policies that support, rather than hinder, business operations and growth.