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The House of Representatives on Monday inaugurated the Ad-Hoc Committee to examine the implications of the rules and security of the adoption of cryptocurrency and the Point-Off-Sale (POS) operation in Nigeria.
Speaking at the inauguration ceremony in Abuja, the Speaker of the DPR, Tajudeen Abbas, said the committee was established in response to increasing concerns about fraud, cyberspace crime, and consumer exploitation in the country’s digital financial sector.
He remembered that in November 2024, the DPR had decided to summon the Governor of the Central Bank Nigeria (CBN), Olayemi Cardoso, along with the Head of the Deposit Money Bank Executive, to provide solutions to problems arising from the bad documentation of the National Post Operator.
The decision followed a motion sponsored by members representing Ehime/Mbano/Uboma/Obowo Federal Constituency of the IMO state, which noted that fraud activities involving postal operators became increasingly common. MPs have emphasized the need to “fight such illegal practices and protect the integrity of financial transactions in Nigeria.”
The DPR observes that the post operation does not document to create a way for identity theft, money laundering, and other illegal financial activities. Further stating that upholding user documentation requirements will help curb fraud and increase the security of digital transactions.
Abbas emphasized the urgent need for a comprehensive rules frame to overcome the gaps in the operation of virtual asset service providers.
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“This is because there are no clear rules, coupled with technological volatility and complexity, the House of Representatives feel very important to establish regulations and steps for consumer protection to guide the activities of virtual asset service providers, including cryptocurrency and crypto assets,” said the speaker.
He explained that the newly inaugurated AD-Hoc Committee would regulate public hearing to collect input from the main stakeholders, with the intention to develop a law that would ensure the adoption of a safe and transparent digital currency in Nigeria.
In his remarks, the Chairperson of the Committee, Olumi Bamisile (APC -Ekiti), described the assignment as one of the national interests, saying it is important to achieve a balance between technological innovation and national security.
“We have been entrusted with tasks that have national significance, to review the economic, regulatory and security implications of the adoption of cryptocurrency and postal operations in Nigeria. While this technology offers great potential for financial inclusion and innovation, they also raise serious risks from cybercrime, money laundering, terrorism funding, and no rental.
He assured that the committee would develop legislative road maps and regulations that encourage innovation while protecting citizens and protecting the integrity of the national financial system.
Bamisile added that the committee would cooperate with major institutions such as the Nigerian central bank, Securities and Exchange Commission, Nigeria Deposit Insurance Corporation, Nigerian Financial Intelligence Unit, Economic and Financial Crime Commission, Independent Corruption Practices and other related violation commissions, and Nigerian Police forces.
He further notes that the committee will adopt a consultative approach, based on evidence by involving regulators, banks, fintech operators, civil society groups, and security institutions through public hearing to get a variety of perspectives on developing digital financial ecosystems.
