- The House of Representatives on Wednesday resolved to summon the Central Bank Governor, Olayemi Cardoso, and CEOs of commercial banks to address the challenges arising from the lack of proper documentation of Point of Sale users nationwide.
This decision followed a motion sponsored by John Okafor, representing Ehime/Mbano/Uboma/Obowo Federal Constituency, Imo State, during the plenary session.
While lobbying his colleagues to support the motion, Okafor highlighted the growing challenges posed by the undocumented identities of POS users in Nigeria.
He noted that fraudulent activities within the financial system have been linked to some POS users, emphasizing the need to address these issues to combat illicit practices and protect the integrity of financial transactions in the country.
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’ identity, 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.”
In a pointed criticism of the Central Bank of Nigeria, the APC lawmaker, accused the apex bank of exhibiting regulatory bias and failing to enforce due process effectively through the relevant regulatory bodies.
He urged immediate intervention to address the issue, emphasizing the need to “shield Nigerians from the hands of criminals exploiting the POS system.”
“Establishing a system for verifiable documentation of POS users’ and recipients’ identity aligns with the national and international financial regulatory requirements to prevent financial crimes and ensure compliance with anti-money laundering and know your customer regulations,” he said.
Following overwhelming support for the motion, Speaker Tajudeen Abbas who presided over plenary mandated 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 utilising POS services to appear before them.
