A financial expert, Mr Fasasi Atanda, has expressed concern over the recent push by the Corporate Affairs Commission (CAC) to mandate the registration for all ‘Point of Sale’ (POS) agents in the country.

Atanda, the National President, Association of Mobile Money and Bank Agents in Nigeria (AMMBAN), told the News Agency of Nigeria (NAN) on Monday in Abuja that the directive would affect small businesses in the country.

According to him, POS agents have become a crucial part of Nigeria’s financial ecosystem, particularly in underserved areas, where traditional banking services are scarce.

He said that these agents facilitated financial transactions and provided vital services to communities that would otherwise be excluded from the formal financial system.

Atanda said that the CAC’s mandate had been criticised as redundant and burdensome because the POS agents were already regulated through financial institutions, with their data profiled by entities like MoniePoint.

“Before a POS can be issued, agents must provide their personal and business details, which are stored in a database maintained by the Nigerian Interbank Settlement System (NIBSS).

“This existing regulatory framework ensures that POS agents are already monitored and accountable.

“The new mandate from CAC, however, requires POS agents to register their businesses with the commission, a move seen as an unnecessary duplication of efforts.

“Critics argue that the mandate does not effectively address fraud concerns, which are cited as the primary reason for the registration requirement.

“Instead, it imposes additional financial and administrative burdens on small business owners, many of whom operate on thin margins,’’ he said.

According to Atanda, POS agents, represented by AMMBAN associations, have taken legal action to challenge the mandate.

“They argue that the CAC’s policy is a misplaced priority that fails to recognise the existing regulatory frameworks in place.

“The association contends that the policy unfairly targets their members and imposes unnecessary costs and bureaucratic hurdles that can drive many small agents out of business.

“ The POS and FinTech sectors have been among the most dynamic and rapidly growing parts of Nigeria’s economy, attracting significant foreign direct investment and creating millions of jobs.

“Policies that stifle this growth can have far-reaching consequences for economic development and financial inclusion,’’ Atanda said.

He, therefore, called on policymakers to engage stakeholders in decision-making that would support innovation, growth and guard against fraud.

“By working collaboratively, regulators and industry participants can find solutions that balance oversights with the need to foster a thriving and inclusive financial sector,’’ Atanda said.

By Seun Ibiyemi

The government has collected a total of N78.95 billion from the N50 levy imposed on electronic bank transfers within the first five months of 2024.

Analysis of the Federal Allocation Accounts Committee report released by the National Bureau of Statistics showed that 36 state governments received a total allocation of N31.84bn from January to April.

The EMTL was introduced in the Finance Act 2020, which amended the Stamp Duty Act to tap into the growth of electronic funds transfers in the country.

The levy is imposed as a singular and one-off charge of N50 on electronic receipt or transfer of money deposited in any deposit money bank or financial institution on any type of account on sums of N10,000 and above.

Revenue derived from the EMTL is shared among the three tiers of government based on derivation, with the Federal Government receiving 15 per cent, state governments receiving 50 per cent and local governments getting 35 percent.

The report indicated that the government got N15.9 billion in January, N15.15bn in February, N14.75 billion in March, N18 billion in April and N15.14 billion in May.

A breakdown of the federal allocation also showed that N8.93 billion in January, N7.96bn in February, N7.58 billion in March, and N7.38 billion in April were shared among the states from the bank transfer levy.

Further analysis showed that Abia State got N797.79 million, Adamawa (N729.16 million), Akwa-Ibom (N796.81 million), Anambra (N1.03 billion), Bauchi (N818.98 million), Bayelsa (N607.2 million), Benue (N805.76 million) and Borno (N811.03 million).

According to the 2023–2025 Medium Term Expenditure Framework and Fiscal Strategy Paper, the government projected to make at least N137.03 billion in 2023, N157.59 million in 2024, and N189.11 million from EMTL.

In 2023, digital banking channels brought in roughly N438 million for 10 financial institutions, rising by 37.54 percent from N318.64bn in the previous year, an analysis of their annual reports showed.

These channels include mobile applications, USSD channels, automated teller machines, agency banking, internet banking, point-of-sale payments, as well as credit and debit card transactions.

In an earlier interview with journalists, the Head of Corporate Communications, NIBSS, Lilian Phido, said, “It is very clear that more and more people are accepting the channels of payment that are available and the platforms are stable.

“With stability, these components have grown. With stability, more and more people are moving.”

By Esther Agbo

Nigeria’s foreign exchange reserves have climbed to $34.7 billion, as per data from the Central Bank of Nigeria’s website on Sunday.

This marks a $110 million increase from the previous day’s figure of $34.5 billion.

Over the past week, the reserves have grown by $316 million since July 1.

This rise is attributed to several factors, including higher oil prices, improved diaspora remittances, and the Central Bank’s efforts to stabilise the currency.

Experts view this growth in foreign exchange reserves positively, highlighting its role in bolstering Nigeria’s economic resilience, as it provides a buffer against external shocks and helps the country meet its financial obligations.

Fitch Ratings recently upgraded Nigeria’s economic outlook to positive, citing significant reforms that have restored macroeconomic stability and improved policy coherence and credibility.

“The positive outlook partly reflects reforms over the last year, which have reduced distortions stemming from previous unconventional monetary and exchange rate policies,” Fitch noted.

The Central Bank has enacted several strategies to oversee the foreign exchange market, such as establishing the Investors’ and Exporters’ window. This initiative has encouraged foreign investment and bolstered reserves.

Consequently, these reforms have brought substantial inflows back into the official foreign exchange market and significantly increased foreign portfolio investments.

However, Fitch pointed out ongoing immediate hurdles, including elevated inflation rates and volatility in the FX market. Nonetheless, the agency anticipates additional measures for monetary policy tightening and enhancements in monetary policy transmission mechanisms.

According to Fitch, “The reforms have contributed to the restoration of macroeconomic stability and enhanced policy coherence and credibility.

“However, we see significant short-term challenges, notably high inflation, and the FX market has yet to stabilise, and the durability of the commitment to reform is to be tested.”