The Economic and Financial Crimes Commission (EFCC) has raised concerns over Nigeria’s fintech and Point-of-Sale (POS) networks. Weak verification processes and poor oversight, they warn, create opportunities for criminal exploitation.
At a resumed investigative session organized by the House Ad-hoc Committee on Cryptocurrency and POS Operations, Dein Whyte, EFCC Cybercrime Section Supervisor, explained the risks. Poor know your customer (KYC) compliance, unverified agents, and compromised system architecture allow criminals to channel illicit funds through POS operators. As a result, stronger monitoring is necessary.
Fraud Losses on Digital Platforms Rising
Paul Okafor, National President of the Association of Digital Payment and POS Operators of Nigeria (ADPPON), reported a sharp rise in fraud losses. They increased from N17.67 billion in 2023 to N52.26 billion in 2024. For instance, POS platforms accounted for more than 26 percent of cases. This highlights the risks of unregulated operations.
Okafor described weak POS systems as a national security concern. However, Dotun Adekunle, Chief Operating Officer of OPay, argued that banks, not fintech companies, are often the source of vulnerabilities. He added that stronger anti-fraud tools have reduced fintech exposure to illicit funds.
Committee Plans Regulatory Reforms
Hon. Olufemi Bamisile, Chairman of the committee, said regulatory gaps, offshore data storage, and unlicensed crypto services threaten Nigeria’s digital economy. Additionally, the committee will propose legislation to strengthen oversight and protect consumers.
EFCC officials stressed the need for robust monitoring of core banking applications and fintech infrastructure. Moreover, they said that enhanced regulation is essential to curb fraud and maintain trust in digital payment systems.
