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ABUJA – The House of Representatives on Wednesday resolved to invite the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, alongside the Chief Executive Officers of commercial banks operating in the country, to appear before its members.
The invitation is targeted at proffering solutions to the ongoing challenges related to the lack of proper documentation for Point of Sale (POS) users across Nigeria.
The resolution of the House came after the consideration and adoption of a motion sponsored by Hon. John Okafor, the member representing Ehime/Mbano/Uboma/Obowo Federal Constituency in Imo State, during Wednesday’s plenary session.
While lobbying for support, the lawmaker highlighted the growing challenges linked to the lack of documented identities for Point of Sale (POS) users across Nigeria.
He stressed that fraudulent activities within Nigeria’s financial system have been traced to POS (Point of Sale) users, underscoring the urgent need to address such illicit practices and preserve the integrity of financial transactions across the country.
“The House acknowledges that the lack of documentation for POS transactions, particularly those involving unverified identities, creates a significant loophole that facilitates fraudulent activities such as identity theft, money laundering, and unauthorized transactions,” he said.
“Enforcing the documentation of users’ identities is crucial in reducing fraud and enhancing the security of financial transactions in Nigeria. The House recognizes that proper documentation of Point of Sale (POS) users fosters greater accountability among both operators and users. This transparency enables the tracing of transactions to individuals, ensuring that those involved in illegal activities are held accountable.
In a pointed critique aimed at the Central Bank of Nigeria (CBN), the All Progressives Congress (APC) lawmaker highlighted what he described as regulatory bias and challenges in enforcing due process by the relevant regulatory authorities. He called for immediate intervention to address this growing concern and to shield Nigerians from the risks associated with criminal activities through the use of the POS system.”
In his remarks, he emphasized the importance of establishing a robust system for the verifiable documentation of both POS users and recipients. This initiative is in line with national and international financial regulatory standards, aiming to combat financial crimes and ensure compliance with anti-money laundering (AML) and know-your-customer (KYC) regulations.
Following overwhelming support for the motion, Speaker Tajudeen Abbas, who presided over the plenary, directed the House Committees on Digital and Electronic Banking, Finance, Banking Regulations, and Financial Crimes to summon the Governor of the Central Bank of Nigeria (CBN), as well as the Group Managing Directors of all commercial banks and other financial institutions utilizing POS services, to appear before them.
The Committees are to report back to the House within two weeks have four weeks for legislative action.
