The Nigerian House of Representatives has taken a decisive step to tackle financial fraud linked to Point of Sale (POS) operators by summoning the Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, and top executives of commercial banks.
This decision, reached during Wednesday’s plenary, comes amid concerns about the lack of proper documentation of POS users across the country.
The motion, put forward by John Okafor, a lawmaker representing Ehime/Mbano/Uboma/Obowo Federal Constituency in Imo State, highlighted the risks posed by unverified POS transactions.
Okafor argued that these undocumented transactions provide opportunities for illegal activities such as identity theft, money laundering, and other financial crimes.
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.
“By enforcing the documentation of users’ identity, the incidence of fraud will significantly reduce and the security of financial transactions in Nigeria will be enhanced. The House is aware that proper documentation of POS users’ identities fosters accountability among operators and users. This transparency will help trace transactions back to the individuals involved, holding them accountable for illegal activities.”
Speaker Tajudeen Abbas supported the motion and directed relevant House committees, including those on Digital Banking, Finance, and Financial Crimes, to meet with the CBN Governor and bank executives. These officials are expected to propose solutions within four weeks.
