House moves to address risks in digital finance
The Speaker of the House of Representatives, Hon. Tajudeen Abbas, on Monday inaugurated an ad hoc committee tasked with reviewing the economic, regulatory, and security implications of cryptocurrency adoption and Point-of-Sale (POS) operations in Nigeria.
Speaking at the event held in Abuja, the Speaker emphasized that the increasing role of digital financial technologies in Nigeria’s economy requires urgent legislative attention. He said the decision to establish the committee was driven by growing concerns around fraud, cybercrime, and consumer exploitation within the digital finance ecosystem.
Abbas noted that while Nigeria’s economy has shown resilience in recent years—recovering from multiple recessions and recording growth in non-oil sectors—the expansion of digital finance poses both opportunities and risks.
Cryptocurrencies seen as both innovation and threat
In his remarks, Abbas acknowledged the promise of digital assets like cryptocurrencies. He said they have the potential to drive financial inclusion and innovation in Nigeria, particularly for unbanked and underbanked populations. However, he warned that the lack of proper regulatory oversight opens the door to a wide range of financial crimes.
“The absence of clear regulations, coupled with the volatility and complexity of digital assets, has created an urgent need for legislative intervention,” he said.
According to him, there are growing concerns that cryptocurrencies may be exploited for money laundering, terrorism financing, and other illegal activities. These risks, he said, must be addressed through robust legislation and regulatory oversight.
Committee to develop comprehensive legislation
The new ad hoc committee is expected to conduct public hearings and engage with a wide range of stakeholders in the digital finance sector. These will include financial regulators, security agencies, fintech companies, legal experts, and consumer protection groups.
Abbas explained that the goal is to create a well-informed and inclusive legislative framework that balances innovation with consumer and national security protections.
“It is because of this lack of clear rules, coupled with the volatility and complexity of the technology, that the House of Representatives found it imperative to establish consumer protection measures and a regulatory framework for Virtual Assets Service Providers, including cryptocurrencies and crypto assets,” he added.
Committee chair pledges responsible oversight
Hon. Olufemi Bamisile (APC–Ekiti), who was appointed as the Chairman of the committee, also addressed the gathering. He described the assignment as one of national importance and said it would focus on harmonizing innovation with risk management.
“We have been entrusted with a task of national significance — to review the economic, regulatory, and security implications of cryptocurrency adoption and POS operations in Nigeria,” Bamisile stated.
He acknowledged that while digital finance has contributed positively to financial inclusion, it has also introduced complex challenges such as cybercrime, fraud, and regulatory uncertainty. He emphasized the need to create policies that can mitigate these risks without stifling innovation.
Collaboration with key agencies planned
Bamisile also confirmed that the committee will work closely with major regulatory and enforcement bodies in the country. These include:
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Central Bank of Nigeria (CBN)
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Securities and Exchange Commission (SEC)
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Nigeria Deposit Insurance Corporation (NDIC)
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Nigerian Financial Intelligence Unit (NFIU)
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Economic and Financial Crimes Commission (EFCC)
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Independent Corrupt Practices and Other Related Offences Commission (ICPC)
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Nigeria Police Force
The chairman said this collaboration will ensure that the final legislative outcome is comprehensive and aligns with both international best practices and Nigeria’s unique economic environment.
Balancing innovation with security
As Nigeria continues its journey toward a more digitized economy, both lawmakers and stakeholders are becoming increasingly aware of the need to regulate emerging technologies like cryptocurrencies and POS systems. The committee’s findings and recommendations are expected to shape the future of digital finance regulation in the country.
Speaker Abbas assured Nigerians that the 10th House of Representatives remains committed to protecting citizens and the financial system from misuse while supporting President Bola Tinubu’s broader economic reforms.
