Speaker of the House of Representatives, Hon. Tajudeen Abbas Monday inaugurated an Ad hoc Committee to review the economic, regulatory, and security implications of cryptocurrency adoption and Point-of-Sale (POS) operations in Nigeria.
While inaugurating the committee in Abuja, Abbas said that the committee became necessary following growing concerns of fraud, cybercrime, and consumer exploitation in the digital finance space.
He said that over the years, the Nigerian economy proved to be resilient, often bouncing back from recessions and showing impressive growth in its non-oil sectors.
According to him, it is therefore safe to conclude that the cryptocurrency trade will thrive in such a robust economic environment.
He, however, said that the vulnerability inherent in cryptocurrency operations cannot be underestimated.
The speaker said that there were real concerns about its susceptibility to terrorism financing and money laundering, considering its opaque nature, dubious regulatory framework, unclear governance structure and lack of accountability.
“It is because of this absence of clear rules, coupled with the volatility and complexity of the technology, that the House of Representatives found it imperative to establish regulations and consumer protection measures that will regulate the activities of Virtual Assets Service Providers, including cryptocurrencies and crypto assets.
“This Ad-Hoc Committee is therefore absolutely necessary. Its main job is to undertake public hearings to collate relevant information from stakeholders that will guide the House in developing legislation for a regulatory framework for the adoption of the currency in our economy.
“Its work will also guide the House in its oversight functions as they concern the use of digital currency in Nigeria,” he said.
Tajudeen said that the 10th House remained at the vanguard of protecting the country and its citizens from any negative development that will impact the transformative work being done by the administration of President Bola Tinubu to reform the Nigerian economy.
He urged all committee to be patriotic in the discharge of its functions and let the best intentions for the good of the country continue to guide the work as always.
In his remarks, the Chairman of the committee, Hon. Olufemi Bamisile (APC-Ekiti) said the assignment is of national significance aimed at striking a balance between financial innovation and national security.
“We have been entrusted with a task of national significance: to review the economic, regulatory, and security implications of cryptocurrency adoption and Point-of-Sale operations in Nigeria.
“Across the world, financial systems are being reshaped by technology. In Nigeria, cryptocurrency and POS operations have grown rapidly, creating new opportunities for commerce, financial inclusion, and innovation.
“But alongside these opportunities lie serious risks cybercrime, fraud, money laundering, terrorism financing, and regulatory uncertainty,” he said.
Bamisile said that the committee’s work will focus on developing a legislative and regulatory framework that encourages innovation while protecting citizens and the integrity of the nation’s financial system.
The chairman said that the committee will collaborate closely with key regulatory and security agencies such the Central Bank of Nigeria (CBN) and Securities and Exchange Commission (SEC),
He said that they will work with the Nigeria Deposit Insurance Corporation (NDIC), Nigerian Financial Intelligence Unit (NFIU), Economic and Financial Crimes Commission (EFCC), Independent Corrupt Practices and Other Related Offences Commission (ICPC), and the Nigeria Police Force.
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