Crypto Shake-Up: Reps Push For Strict Oversight On Digital Currencies And POS Transactions

The House of Representatives has established an Ad-hoc Committee to assess the regulatory and security challenges associated with cryptocurrency adoption and Point-of-Sale (PoS) operations across Nigeria.

Speaker Tajudeen Abbas announced the committee’s formation on Monday, emphasizing that it was necessitated by increasing reports of fraud, cybercrime, and consumer exploitation in the country’s digital finance sector.

Abbas highlighted concerns over the growing number of scams linked to unregulated PoS and crypto transactions, noting that weak oversight has made Nigeria’s digital financial ecosystem vulnerable to fraudulent activities.

“The absence of clear rules, combined with the complexity and volatility of these technologies, makes it imperative for the House to establish regulations and consumer protection measures,” the Speaker said.

He explained that the committee’s work would aim to close existing loopholes and safeguard citizens from exploitation by Virtual Asset Service Providers (VASPs), including cryptocurrency operators and other digital finance platforms.

The ad-hoc committee will conduct public hearings and solicit submissions from stakeholders such as the Central Bank of Nigeria (CBN), fintech companies, cybersecurity experts, and consumer rights organisations.

“This committee will gather essential information to guide the House in drafting legislation for a regulatory framework governing cryptocurrency and virtual assets in Nigeria,” Abbas added.

CBN, Bank CEOs to Appear Before House
In November 2024, the House resolved to summon CBN Governor Olayemi Cardoso and the Chief Executives of commercial banks due to gaps in documentation for PoS operators nationwide.

The resolution followed a motion by the lawmaker representing Ehime/Mbano/Uboma/Obowo Federal Constituency of Imo State, who raised concerns about fraudulent activities involving PoS agents.

The House noted that undocumented PoS transactions create vulnerabilities for identity theft, money laundering, and unauthorized fund transfers, calling for stricter regulation of operator and user data.

Lawmakers Advocate for Consumer Protection
House members stressed that enforcing documentation and regulatory compliance for PoS operators and crypto platforms would enhance financial security and rebuild public trust in digital payment systems.

They argued that while technology has simplified transactions, the absence of regulation leaves citizens exposed to high risks, with many victims of PoS and crypto fraud unable to recover their funds.

Nigeria remains one of Africa’s largest digital finance markets, with millions of daily transactions processed through PoS terminals and cryptocurrency exchanges.

However, the growth of the sector has been accompanied by rising cybercrime, prompting regulators and lawmakers to seek a careful balance between innovation and security.