The House of Representatives, on Wednesday, resolved to invite the Governor of the Central Bank of Nigeria, Olayemi Cardoso, and Chief Executive Officers of commercial banks operating in the country to appear before it to propose solutions to the challenges posed by the lack of documentation of Point of Sale users across the country.
The resolution of the House followed the consideration and adoption of a motion sponsored by the member representing Ehime/Mbano/Uboma/Obowo Federal Constituency, Imo State, John Okafor, during Wednesday’s plenary.
Lobbying his colleagues for support for the motion, the lawmaker identified the increasing challenges associated with the undocumented identities of POS users in Nigeria.
According to him, cases of fraudulent activities within the financial system have been established against POS users, adding that there is “A necessity to combat such illicit practices and safeguard the integrity of financial transactions within Nigeria.”
He said, “The House is aware that undocumented POS transactions from both party’s identities 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.
The All Progressives Congress lawmaker expressed what he called regulatory bias and enforcement challenge towards due process by the relevant regulatory bodies.
He called for immediate intervention to avert this ugly situation and “Shield Nigerians from the hands of criminalities through the use of the POS system.”
He added, “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.”
Following overwhelming support for the motion, the Speaker, Tajudeen Abbas, who presided over the 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.
The committees have four weeks to report back to the House.