The House of Representatives has decided to summon the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, along with the Chief Executive Officers of commercial banks, to discuss solutions to the ongoing issue of unverified Point of Sale (POS) operators across Nigeria.
Naturenex reports that this resolution came after the House debated and adopted a motion presented by John Okafor, the representative for Ehime/Mbano/Uboma/Obowo Federal Constituency in Imo State, during Wednesday’s plenary session.
While advocating for the motion, Okafor highlighted the increasing concerns surrounding the lack of proper documentation for POS users, which has led to a rise in fraudulent activities.
He noted that the absence of identity verification for POS users opens the door to crimes such as identity theft, money laundering, and unauthorized transactions.
Okafor stressed that enforcing the documentation of POS users’ identities could significantly reduce these fraudulent activities and improve the security of financial transactions in Nigeria.
He further argued that proper user verification would promote accountability among operators and users, enhancing transparency and enabling traceability of transactions.
Okafor 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.”
The lawmaker also criticized the Central Bank and other regulatory bodies for what he described as a failure to enforce proper regulations and address this issue. He urged immediate intervention to protect Nigerians from criminals exploiting the POS system.
He added that implementing a system to verify the identity of POS users would not only align with national financial regulations but also meet international anti-money laundering and “Know Your Customer” (KYC) standards.
Following strong support for the motion, Speaker Tajudeen Abbas directed 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 commercial banks to discuss the matter.
The committees have been given four weeks to report back to the House.
