- The Nigerian House of Representatives has resolved to summon the CBN Governor and bank CEOs to address unverified POS operators amid rising financial fraud
- Rep. John Okafor calls for the documentation of POS users’ identities to prevent fraud, identity theft, and illegal transactions in Nigeria's financial system
- The House has tasked relevant committees to investigate the issues surrounding POS operations and propose solutions to strengthen Nigeria's financial security
The House of Representatives has passed a resolution to invite the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, and the Chief Executive Officers (CEOs) of commercial banks to propose solutions to the growing concerns surrounding the lack of documentation of Point of Sale (POS) users across the country.
The resolution came after the adoption of a motion by John Okafor, the representative for Ehime/Mbano/Uboma/Obowo Federal Constituency in Imo State, during the plenary session of Wednesday, November 27.
Okafor highlighted the mounting issues associated with the undocumented identities of POS users, which he argued have contributed to an increase in fraudulent activities within Nigeria's financial system.
Addressing his colleagues in the House, Okafor pointed out the urgent need to tackle illicit practices and ensure the integrity of financial transactions.
He said, "The House is aware that undocumented POS transactions create a loophole for fraudulent activities, such as identity theft, money laundering, and unauthorised transactions."
Okafor further emphasised that enforcing the documentation of POS users' identities would significantly reduce fraud and enhance the security of financial transactions.
He added, "Proper documentation fosters accountability among operators and users, ensuring transparency and enabling the tracing of transactions back to the individuals involved, thus holding them accountable for any illegal activities."
The motion also criticised what Okafor described as regulatory bias and enforcement challenges by the relevant authorities, specifically the CBN. He called for an immediate intervention to prevent criminal activities linked to POS systems and safeguard Nigerians from financial crimes.
In response to the motion, Speaker Tajudeen Abbas, who presided over the plenary session, mandated the House Committees on Digital and Electronic Banking, Finance, Banking Regulations, and Financial Crimes to invite the CBN Governor and the Group Managing Directors of all commercial banks and financial institutions that utilise POS services.
The committees were instructed to submit a report back to the House within four weeks.
With growth of digital payment in Nigeria, is cash still king?
Meanwhile, TheRadar reported that the value of digital transactions increased 47.4 times between 2013 and 2023 to reach N657.8 trillion from N13.9 trillion, representing an average monthly figure of N54 trillion over the 10 years.
With the growth in digital transactions, driven by Nigeria’s young demographic, fintech innovations and the policies of the Central Bank of Nigeria, many wondered if cash was still king.
