The House of Representatives has constituted an Ad-hoc Committee to examine the regulatory and security implications of cryptocurrency adoption and Point-of-Sale (PoS) operations across Nigeria.
Speaker of the House, Tajudeen Abbas, announced the formation of the committee during an inauguration ceremony on Monday, saying the move became necessary following increasing reports of fraud, cybercrime, and consumer exploitation within the digital finance ecosystem.
Abbas said the House was worried about the rising number of scams linked to unregulated PoS and crypto transactions, stressing that Nigeria’s digital financial space had become a breeding ground for fraudulent practices due to weak oversight mechanisms.
“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,” the Speaker said.
He explained that the proposed framework would help close existing loopholes and protect citizens from exploitation by Virtual Asset Service Providers (VASPs), including cryptocurrency operators and other digital finance platforms.
According to Abbas, the ad-hoc committee’s primary assignment will include conducting public hearings and gathering submissions from key stakeholders such as the Central Bank of Nigeria (CBN), fintech companies, cybersecurity experts, and consumer rights organisations.
“The committee is necessary to undertake public hearings to collate relevant information that will guide the House in developing legislation for a regulatory framework for the adoption of cryptocurrency and virtual assets in our economy,” he added.
CBN, Bank CEOs Summoned
Naijaonpoint recalls that in November 2024, the House resolved to summon the CBN Governor, Olayemi Cardoso, alongside the Chief Executives of commercial banks, over the lack of documentation for PoS operators nationwide.
The resolution followed a motion sponsored by the lawmaker representing Ehime/Mbano/Uboma/Obowo Federal Constituency of Imo State, who raised concerns about fraudulent activities involving PoS agents.
The House had observed that undocumented PoS transactions created loopholes for identity theft, money laundering, and unauthorised fund transfers, calling for stricter regulation of users’ data.
Lawmakers Push For Consumer Protection
Members of the House noted that enforcing documentation and regulatory compliance among PoS operators and crypto platforms would strengthen financial security and help rebuild public trust in digital payment systems.
They argued that while technology has simplified financial transactions, the lack of regulation continues to expose citizens to high risks, with several victims of PoS and crypto-related fraud unable to recover their funds.
Naijaonpoint reports that Nigeria remains one of Africa’s largest digital finance markets, with millions of daily transactions conducted through PoS terminals and cryptocurrency exchanges.
However, the boom has come with rising cybercrime and scams, prompting regulators and lawmakers to seek a balance between innovation and security.
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