The House of Representatives on Monday inaugurated an Ad-hoc Committee to examine the regulations and security implications surrounding cryptocurrency adoption and Point-of-Sale (POS) operations in Nigeria.
Speaking at the inauguration ceremony in Abuja, Speaker Tajudeen Abbas explained that the formation of the committee became necessary following rising allegations of fraud, cybercrime, and consumer exploitation in the digital finance space.
He recalled that in November 2024, the House had resolved to summon the Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, alongside Chief Executive Officers of commercial banks, to propose solutions to the challenges associated with undocumented POS users across the country.
The resolution followed a motion sponsored by the member representing Ehime/Mbano/Uboma/Obowo Federal Constituency in Imo State, who stressed that fraudulent activities within the financial system had been traced to some POS operators. The motion highlighted the need to combat such illicit practices and safeguard the integrity of financial transactions in Nigeria.
The House noted that undocumented POS transactions create loopholes for crimes such as identity theft, money laundering, and unauthorized transactions. It added that enforcing proper user documentation would reduce fraud and enhance the security of financial transactions nationwide.
According to Speaker Abbas, the creation of a regulatory framework has become imperative to address gaps identified among virtual asset service providers.
“Due to the absence of clear rules, coupled with the volatility and complexity of the technology, the House found it necessary to establish consumer protection measures and regulations to govern the operations of Virtual Assets Service Providers, including cryptocurrencies,” Abbas said.
He further stated that the Ad-hoc Committee would conduct public hearings to gather insights from stakeholders that will inform the development of a comprehensive legislative framework for digital currencies in Nigeria.
In his remarks, the Chairman of the Committee, Hon. Olufemi Bamisile (APC–Ekiti), emphasized the need to balance financial innovation with national security.
“We have been entrusted with a task of national importance — to review the economic, regulatory, and security implications of cryptocurrency adoption and POS operations in Nigeria,” Bamisile said.
He noted that while cryptocurrency and POS operations have boosted commerce, financial inclusion, and innovation, they also pose significant risks, including cybercrime, fraud, money laundering, terrorism financing, and regulatory uncertainty.
Bamisile assured that the committee would develop a legislative and regulatory framework that promotes innovation while protecting citizens and maintaining the integrity of Nigeria’s financial system.
He added that the committee would work closely with key agencies 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 concluded that the committee would adopt a consultative and evidence-based approach by engaging regulators, banks, fintech operators, civil society, and security experts in public hearings to gather diverse perspectives.
