House Decries Rise in Fraud Associated with POS Operations
Adedayo Akinwale in Abuja
The House of Representatives has expressed concern over the growing rise in fraud associated with Point of Sales (POS) operations, adding there was a need to address noticeable deep gaps if Nigerias digital-finance ecosystem is to be safe, innovative and globally competitive.
The chairman of the Adhoc Committee on the Economic, Regulatory and Security, Hon. Olufemi Bamisile, stated this on Monday in Abuja at an investigative hearing organised by the committee.
He stated: Over the past weeks, this Committee has met with regulators, security institutions, digital-asset stakeholders in the digital assets and cryptocurrency sector.
We have received multiple reports of unprofiled agents, cloned terminals, anonymous transactions and weak KYC practices that continue to expose Nigerians to financial loss and security risks.
The Committee is also worried about the lax or sometimes prohibitive regulatory requirements that shape your operations – including the geotagging directive, which has operational implications for agents, and the uneven enforcement of profiling standards across the sector.
There is another issue the Committee must place on record today. We have received allegations and credible information that some POS operators have now ventured into the business of digital assets, including crypto-related services, for which they are not licensed.
Bamisile added that this development raised serious red flags around consumer protection, antimoney laundering, combatting the finance of terrorism, data integrity and the misuse of instruments originally designed for basic payment services.
He stressed the committee intended to seek clarity from operators and regulators on this matter during todays session.
The chairman noted the attention of the committee has also been drawn to the disturbing trend of phoney companies being registered at the Corporate Affairs Commission (CAC), opening accounts across the banking system both with the use of the NIN and BVN of unsuspecting persons, and using POS operators – many of whom are unverified – to move illicit funds.
He said this highlighted weak verification mechanisms and the urgent need for a coordinated oversight framework.
Bamisike noted that another critical issue is the storage of customer data outside Nigerias territorial jurisdiction.
He said: Several major fintech companies operating here keep sensitive data in foreign servers, limiting the ability of Nigerian regulators and security agencies to conduct real-time audits, trace transactions or enforce orders.
This has direct national-security implications, particularly in a sector connected to terrorism financing risks, cybercrime and money laundering.
We also recognise that operators face challenges of their own; including fragmented regulation, overlapping mandates among agencies, multiple compliance requirements and policy inconsistencies.
The chairman emphasised that engagement was therefore not adversarial, but an opportunity for honest conversations, clarity, and collaboration.
He said the mandate of the committee was clear: to recommend legislation that would deliver a harmonised regulatory framework, stronger security safeguards, improved consumer protection, and an environment where innovation and investment can flourish responsibly.
