The House of Representatives on Monday inaugurated an ad-hoc committee to examine the regulatory and security implications of cryptocurrency adoption and Point-of-Sale (POS) operations across Nigeria.
Speaking at the inauguration ceremony in Abuja, Speaker of the House, Tajudeen Abbas, said the committee was established in response to mounting concerns over fraud, cybercrime, and consumer exploitation within the country’s digital finance sector.
He recalled that in November 2024, the House had resolved to summon the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, alongside the Chief Executives of deposit money banks, to proffer solutions to issues arising from the poor documentation of POS operators nationwide.
That decision followed a motion sponsored by the member representing Ehime/Mbano/Uboma/Obowo Federal Constituency of Imo State, who noted that fraudulent activities involving POS operators had become increasingly prevalent. The lawmaker had stressed the need to “combat such illicit practices and safeguard the integrity of financial transactions within Nigeria.”
The House observed that undocumented POS operations create avenues for identity theft, money laundering, and other illegal financial activities. It further stated that enforcing user documentation requirements would help curb fraud and enhance the security of digital transactions.
Abbas emphasised the urgent need for a comprehensive regulatory framework to address existing loopholes in the operations of virtual asset service providers.
“It is because of the absence of clear rules, coupled with the volatility and complexity of the technology, that the House of Representatives found it imperative to establish regulations and consumer protection measures to guide the activities of virtual assets service providers, including cryptocurrencies and crypto assets,” the Speaker said.
He explained that the newly inaugurated ad-hoc committee would organise public hearings to gather inputs from key stakeholders, with a view to developing legislation that would ensure safe and transparent adoption of digital currencies in Nigeria.
In his remarks, the Chairman of the Committee, Olufemi Bamisile (APC–Ekiti), described the assignment as one of national importance, saying it was crucial to strike a balance between technological innovation and national security.
“We have been entrusted with a task of national significance, to review the economic, regulatory, and security implications of cryptocurrency adoption and POS operations in Nigeria. While these technologies offer immense potential for financial inclusion and innovation, they also pose serious risks of cybercrime, money laundering, terrorism financing, and regulatory uncertainty,” Bamisile said.
He assured that the committee would develop a legislative and regulatory roadmap that fosters innovation while safeguarding citizens and protecting the integrity of the national financial system.
Bamisile added that the committee would work closely with key institutions such as the Central Bank of Nigeria, Securities and Exchange Commission, Nigeria Deposit Insurance Corporation, Nigerian Financial Intelligence Unit, Economic and Financial Crimes Commission, Independent Corrupt Practices and Other Related Offences Commission, and the Nigeria Police Force.
He further noted that the committee would adopt a consultative, evidence-based approach by engaging regulators, banks, fintech operators, civil society groups, and security agencies through public hearings to obtain diverse perspectives on the evolving digital finance ecosystem.
