Kehinde Fajobi
The House of Representatives has resolved to invite the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, along with Chief Executive Officers of commercial banks, to address the growing issue of undocumented Point of Sale (POS) users across the country.
The resolution followed a motion sponsored by John Okafor, the lawmaker representing Ehime/Mbano/Uboma/Obowo Federal Constituency of Imo State, during Wednesday’s plenary session.
Okafor highlighted the increasing challenges arising from undocumented POS users, which have led to rising fraudulent activities within Nigeria’s financial system.
He said, “The House is aware that undocumented POS transactions from both party’s identities create a loophole for fraudulent activities, such as identity theft, money laundering, and unauthorised transactions.”
He further explained the need for proper documentation, stressing that it would significantly reduce fraud and enhance the security of financial 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 lawmaker also pointed out the importance of accountability and transparency, noting 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.”
Okafor expressed concerns about regulatory bias and the challenges faced by relevant bodies in enforcing due process.
He called for immediate intervention, warning of the risks posed by unregulated POS operations: “Establishing a system for verifiable documentation of POS users’ and recipients’ identity aligns with the national and international financial regulatory requirements to prevent financial crimes and ensure compliance with anti-money laundering and know your customer regulations.”
The motion received overwhelming support from the House.
Speaker Tajudeen Abbas, who presided over the session, tasked the House Committees on Digital and Electronic Banking, Finance, Banking Regulations, and Financial Crimes with inviting the CBN Governor and the Group Managing Directors of all commercial banks and financial institutions using POS services.
The committees have been given four weeks to report their findings.