The House of Representatives has called for the urgent implementation of verifiable documentation for Point of Sale (POS) users and fund recipients in Nigeria to combat rising fraud and enhance financial security.
This came after John Okafor (APC, Imo) presented a motion addressing the growing challenges posed by undocumented POS transactions, which he argued contribute to fraud within the financial system.
Okafor highlighted that the lack of proper identification of POS users creates a loophole for crimes such as identity theft, money laundering, and unauthorized transactions.
“Undocumented POS transactions from both parties’ identities create a gateway for fraudulent activities,” he stated. He emphasized that documenting users’ identities would significantly reduce fraud and enhance the security of financial transactions nationwide.
According to Okafor, enforcing identity verification would ensure accountability and traceability, making holding individuals accountable for illegal activities conducted via POS systems easier.
This transparency will help trace transactions back to the individuals involved, ensuring a lasting end to the criminal use of POS,” he added.
Okafor also pointed to regulatory shortcomings and called for swift intervention to prevent further system exploitation.
He stressed that establishing a system for verifiable documentation would align with national and international financial regulations, such as anti-money laundering (AML) and know-your-customer (KYC) standards, ultimately building trust in Nigeria’s financial system.
“This will protect consumers and businesses from fraudulent schemes and encourage greater participation in the growing cashless economy,” he concluded.