Temporary House of Reps committee wey dey look into economic, regulatory and security impact of crypto and POS use for Nigeria don express concern about how POS-related fraud don dey increase and how hacking and unlicensed crypto activities dey rise for the financial sector.

Olufemi Bamisile, chairman of the committee, talk for one investigative session say stakeholders don show clear big gaps for Nigeria digital financial space.

According to Mr. Bamisile, the committee don receive plenty reports about inconsistencies and weaknesses for the way POS dey used.

We dey worried about the increase of fraud wey dey follow POS operations. Users wey no get correct data and fake POS networks still dey put citizens into risks wey fit prevent.

There are allegations and credible information say some POS operators don start dey involve for crypto activities wey no get license. This one dey raise concern about money laundering, terror financing, data authenticity and the misuse of payment tools wey suppose be for normal transactions.

The chairman also talk say committee don hear about fake companies wey dey register for Corporate Affairs Commission, and some of these companies dem dey suspect to dey use people's NIN and BVN — especially from vulnerable citizens — to open bank accounts and clean dirty money through unverified POS channels.

Paul Okafor, chairman of the Association of Digital Payments and POS Operators of Nigeria (ADPPON), give warning say the POS system don reach critical stage, with fraud rising to levels wey now pose direct threat to national security.

Mr. Okafor say the fast expansion of the industry don outrun the laws and regulation, and that gap na wetin criminals dey exploit.

E note say number of POS operators don grow from about 50,000 in 2017 to more than 2.3 million today, but capacity for oversight and regulation no increase pass ten percent.

He add say criminals don dey use POS more as cash-out points to collect money for ransom and other illicit funds.