The House of Representatives has inaugurated an Ad-hoc Committee to examine the regulations and security implications surrounding cryptocurrency adoption and Point-of-Sale (POS) operations in Nigeria.
Speaker of the House, Tajudeen Abbas, who inaugurated the committee on Monday, said the move became necessary following growing reports of fraud, cybercrime, and consumer exploitation within the nation’s digital finance sector.
It would be recalled that in November 2024, the House resolved to summon the Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, alongside chief executives of commercial banks, to discuss solutions to the challenges caused by the lack of proper documentation of POS operators across the country.
The decision followed a motion sponsored by the member representing Ehime/Mbano/Uboma/Obowo Federal Constituency of Imo State, who decried the surge in fraudulent activities linked to undocumented POS users.
Lawmakers expressed concern that anonymous POS transactions provide loopholes for crimes such as identity theft, money laundering, and unauthorised financial dealings. They stressed that enforcing user documentation would help curb these crimes and enhance transaction security nationwide.
Speaker Abbas noted that a comprehensive regulatory framework has become essential to tackle the identified loopholes in the operations of virtual asset service providers.
“In the absence of clear rules—and given the volatility and complexity of the technology—the House found it imperative to establish consumer protection measures and regulations to guide the activities of Virtual Assets Service Providers, including cryptocurrencies,” he stated.
He added that the Ad-hoc Committee would conduct public hearings to gather input from key stakeholders, which will inform the development of new legislation for a robust regulatory framework governing digital currencies and POS operations in Nigeria.
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