The House of Representatives has mandated its Committees on Digital and Electronic Banking, Finance, Banking Regulations, and Financial Crimes to summon the Governor of the Central Bank of Nigeria (CBN) and the Group Managing Directors (GMDs) of all commercial banks and financial institutions using point-of-sale (PoS) services. They are to appear before the Committees and propose immediate measures to address the issue of verifiable documentation of PoS users and fund recipients, with a report due within four legislative weeks.
This resolution follows the adoption of a motion titled ‘Need to Implement Verifiable Documentation of PoS Users and Fund Recipients’ Identities in Nigeria,’ presented by Hon. John Okafor during Wednesday’s plenary.
Okafor highlighted the rising challenges of undocumented PoS transactions, which create opportunities for fraudulent activities, such as identity theft, money laundering, and unauthorized transactions. He emphasized the necessity of user identity documentation to mitigate these issues and enhance the security and integrity of financial transactions in Nigeria.
By enforcing proper documentation, Okafor argued, the incidence of fraud would decrease, and accountability would be ensured for PoS operators and users. He noted that transparency in PoS transactions would make it easier to trace illicit activities and hold perpetrators accountable.
The lawmaker also stressed the regulatory gaps and enforcement challenges, urging immediate action to protect Nigerians from financial crimes linked to PoS systems. He called for a system of verifiable documentation that complies with both national and international financial regulations, including Anti-Money Laundering (AML) and Know Your Customer (KYC) standards.
Okafor concluded that stringent identity verification measures would protect consumers and businesses, foster trust in the financial system, and promote greater participation in Nigeria’s expanding cashless transactions ecosystem.
