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House sets guidelines for regulation of POS services

The House of Representatives has mandated its Committee on Banking and Currency to organize stakeholders meeting for the purpose of tackling the menace of the Operation of the Point of Sale System (POS) in Nigeria.

The resolutions followed the consideration of a motion on the Urgent Need to Regulate the Point of Sale (POS) Business Operations in Nigeria, moved by a member from Lagos State, Mr Jimoh Olajide, at plenary.

Mr Olajide noted that the Point of Sale (POS) has been turned into a lucrative business in Nigeria and has provided jobs for millions of unemployed Nigerians that see it as a good alternative to white-collar jobs in the country.

The lawmaker, however, observed that while many Nigerians are making legal money from this business, some are using it for fraudulent acts to create fake credit alerts to defraud innocent customers hence the need for government intervention to rescue the rising business sector in the country.

“The Point of Sale (POS) merchants in Nigeria are not only licensed by Commercial Banks, other Private Companies are currently in the business of giving out Point of Sale (POS) for business purposes thus making the business to be more porous and ambiguous.”

He expressed concern that Presently, no financial regulatory body in Nigeria can precisely ascertain the total number of Point of Sale (POS) Machines and their Operators in the country.

Adopting the motion, the House urged the Central Bank of Nigeria (CBN) to, in the public interest, introduce stringent regulations and guidelines including sanctions on the Point of Sale (POS) business operations across the country.

Reporting by Ibrahim Shehu; Editing by Abdullahi Lamino