Nigeria: House of Representatives to Summon CBN Governor, Bank CEOs Over Unverified POS Operators

The House of Representatives has resolved to summon the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, alongside the Chief Executive Officers of commercial banks, to address the growing challenges stemming from the lack of proper documentation of Point-of-Sale (POS) users across the country.

This decision followed a motion presented by John Okafor, the representative of the Ehime/Mbano/Uboma/Obowo Federal Constituency of Imo State, during Wednesday’s plenary session.

Okafor highlighted the escalating risks linked to undocumented POS transactions, emphasizing their role in enabling fraudulent activities within Nigeria’s financial ecosystem.

“Undocumented POS transactions create a loophole for fraudulent activities such as identity theft, money laundering, and unauthorized transactions,” Okafor stated. He further argued that enforcing mandatory documentation of POS users would help combat financial crimes, enhance accountability, and bolster the security of financial transactions in the country.

The lawmaker criticized what he described as regulatory lapses in enforcing proper documentation protocols, urging immediate measures to safeguard Nigerians from criminal activities facilitated through the POS system.

Okafor stressed the importance of establishing a robust system for verifying the identities of POS operators and users, aligning with both national and international financial regulations, including anti-money laundering (AML) and Know Your Customer (KYC) guidelines.

Speaker Tajudeen Abbas, presiding over the plenary, endorsed the motion with overwhelming support from members. He directed the House Committees on Digital and Electronic Banking, Finance, Banking Regulations, and Financial Crimes to summon the CBN Governor and the managing directors of commercial banks and other financial institutions utilizing POS services.

The committees are tasked with investigating the issue and recommending solutions within four weeks. This move underscores the House’s commitment to addressing loopholes in Nigeria’s financial system and fostering greater accountability in digital and electronic banking operations.