The House of Representatives resolved on Wednesday to invite the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, and the CEOs of commercial banks to appear before it to propose solutions to the challenges posed by a lack of documentation among Point of Sale users across the country.
The House passed the resolution after considering and adopting a motion moved by John Okafor, member of the Ehime/Mbano/Uboma/Obowo Federal Constituency, Imo State, at Wednesday’s session.
The legislator lobbied his colleagues for support for the proposal, citing the growing issues associated with unauthorised POS users in Nigeria.
He mentioned that the cases of fraudulent activities within the financial system have been established against POS users, adding that there is “a necessity to combat such illicit practices and safeguard the integrity of financial transactions within Nigeria.”
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’ identities, 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 All Progressives Congress lawmaker fired a shot at the CBN, citing regulatory bias and an enforcement challenge to due process by the appropriate regulatory agencies.
He asked for immediate action to prevent this unpleasant situation and to “shield Nigerians from the hands of criminals through the use of the POS system.”
“Establishing a system for verifiable documentation of POS users’ and recipients’ identities aligns with the national and international financial regulatory requirements to prevent financial crimes, ensure compliance with anti-money laundering, and know your customer regulations.”
Following overwhelming support for the motion, Speaker Tajudeen Abbas, who presided over plenary, directed the House Committees on Digital and Electronic Banking, Finance, Banking Regulations, and Financial Crimes to invite the CBN Governor and Group Managing Directors of all commercial banks and other financial institutions that use POS services to appear before them. Committees have four weeks to report back to the House.
