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Reps Set Up Committee to Probe Crypto, POS Operations Over Rising Fraud, Security Risks

The House of Representatives has inaugurated an ad-hoc committee to investigate the regulatory and security challenges surrounding cryptocurrency adoption and Point-of-Sale (POS) operations across Nigeria.

Speaker of the House, Tajudeen Abbas, who declared the committee open on Monday in Abuja, said the initiative stemmed from growing public concern over incidents of fraud, cybercrime, and consumer exploitation within the nation’s expanding digital financial ecosystem.

Abbas noted that the House took the decision following a November 2024 resolution summoning the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, and Chief Executives of deposit money banks to address the rising cases of unregistered POS operators.

The resolution was based on a motion sponsored by the member representing Ehime/Mbano/Uboma/Obowo Federal Constituency of Imo State, who decried the increasing rate of fraudulent practices linked to POS transactions. The lawmaker had warned that such activities threaten public trust in the financial system and called for immediate policy interventions to safeguard digital transactions.

The House expressed concern that the proliferation of undocumented POS businesses provides a conduit for money laundering, identity theft, and other illicit financial dealings. It stressed that enforcing stricter registration and user verification requirements would strengthen consumer protection and enhance transaction security.

Also see: Nigeria Seeks $2bn China Loan to Build Super Grid, Boost Power Supply

Abbas further underscored the urgency of developing a comprehensive regulatory framework for virtual asset service providers and other digital financial platforms.

He maintained that the new committee’s mandate is to assess current regulations, identify loopholes, and recommend measures to ensure the safety and integrity of Nigeria’s digital financial landscape.

The committee is expected to engage key stakeholders, including financial regulators, security agencies, and fintech operators, in its deliberations before submitting a report to the House for further legislative action.

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