The Nigerian House of Representatives has resolved to summon Central Bank Governor Olayemi Cardoso and the Chief Executives of commercial banks to address the challenges posed by the lack of documentation for Point-of-Sale (POS) users nationwide.
This decision follows a motion presented by John Okafor, the lawmaker representing the Ehime/Mbano/Uboma/Obowo Federal Constituency in Imo State, during Wednesday’s plenary. Okafor underscored the growing risk of fraud and financial crime stemming from undocumented POS transactions, calling for swift action to safeguard the nation’s financial system.
Okafor highlighted the loopholes created by the anonymity of many POS transactions, which, he said, enable crimes such as identity theft, money laundering, and unauthorised activities.
“By enforcing the documentation of users’ identities, the incidence of fraud will significantly reduce, and the security of financial transactions in Nigeria will be enhanced,” Okafor said. He added that proper documentation would promote transparency and accountability, ensuring that financial crimes could be traced to the individuals involved.
The lawmaker further criticised what he described as regulatory lapses and called on financial authorities to implement stricter compliance measures. He argued that a verifiable system for documenting POS users would align Nigeria with international financial standards, including anti-money laundering and “Know Your Customer” (KYC) requirements.
The motion received overwhelming support from lawmakers, prompting Speaker Tajudeen Abbas to direct the House Committees on Digital and Electronic Banking, Finance, Banking Regulations, and Financial Crimes to take immediate action. The committees are tasked with inviting the CBN Governor and the heads of commercial banks to propose solutions and present a roadmap for implementing mandatory documentation of POS users.
The committees have four weeks to report back to the House, with legislators emphasising the urgency of addressing the vulnerabilities in the nation’s financial system.
The move comes amid increasing concerns over the proliferation of financial crimes facilitated by Nigeria’s growing reliance on POS systems. While these systems have expanded access to banking services, particularly in underserved areas, the lack of user accountability has raised alarm among stakeholders.
Financial experts say the proposed measures could strengthen the integrity of Nigeria’s financial ecosystem but caution that implementation must balance security concerns with the ease of doing business.
As the central bank and commercial banks prepare to appear before lawmakers, the focus will remain on how best to protect consumers and ensure that Nigeria’s digital financial landscape evolves responsibly.
