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House committee warns of rising POS, cryptocurrency fraud threatening Nigeria’s financial system
House committee warns of rising POS, cryptocurrency fraud threatening Nigeria’s financial system
The House of Representatives Ad-hoc Committee investigating cryptocurrency adoption and Point-of-Sale (POS) operations has raised fresh alarms over a worsening financial fraud crisis that threatens Nigeria’s financial system.
At a resumed investigative hearing on Monday, Committee Chairman Hon Olufemi Bamisile said engagements with stakeholders exposed “deep gaps” in the digital finance ecosystem, putting citizens at significant financial and security risks.
Bamisile highlighted reports of unprofiled agents, cloned terminals, anonymous transactions, and weak Know-Your-Customer (KYC) practices, which have fueled rising POS fraud nationwide. He also expressed concern over unlicensed cryptocurrency operations infiltrating POS networks, noting the serious risks these pose, including money laundering, terrorism financing, data breaches, and misuse of platforms intended for basic payments.
The Committee was further alerted to cases of fraudulent companies registered at the Corporate Affairs Commission (CAC) using stolen National Identification Numbers (NIN) and Bank Verification Numbers (BVN) to launder funds through unverified POS channels. The storage of sensitive financial data on foreign servers by some fintech firms, Bamisile said, undermines regulatory oversight and national security.
Despite the warnings, he stressed that the investigation aims to strengthen consumer protection, harmonise regulation, and support responsible digital finance innovation rather than stifle growth.
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Speaking at the hearing, Paul Okafor, National President of the Association of Digital Payment and POS Operators of Nigeria (ADPPON), warned that Nigeria’s POS ecosystem has reached a “critical emergency point.” Fraud levels, he said, now constitute a direct national security threat.
Okafor revealed that the number of POS operators grew from 50,000 in 2017 to over 2.3 million today, overwhelming regulatory capacity, which expanded by less than 10 percent in the same period. Data from the Nigeria Inter-Bank Settlement System (NIBSS) showed that POS, digital payment, and banking channels lost N17.67 billion to fraud in 2023, rising sharply to N52.26 billion in 2024 — an increase of N34.59 billion in a single year.
He noted that POS-related fraud incidents surged by 95 percent in Q4 2024, with more than 38,000 cases officially reported and an estimated 70,000 unreported cases. Criminals are increasingly using POS agents as cash-out points for illicit funds, including kidnap ransom payments, with some states reporting that nearly 40 percent of ransom payments pass through informal POS channels.
Okafor urged the Committee to compel the Central Bank of Nigeria (CBN) to implement systemic reforms to restore trust, improve financial inclusion, and secure the nation’s payment ecosystem. His recommendations included:
- Mandatory Nigeria Police Force–NCCC Cybercrime Clearance Certificates for all POS operators.
- Compulsory CAC registration for every POS business to ensure traceability.
- Mandatory membership of recognised trade associations for discipline, training, and self-regulation.
He cited global best practices from India, Kenya, Brazil, South Africa, and the UK, which enforce strict oversight, police vetting, and continuous certification to curb financial fraud.
Okafor concluded that POS services now touch virtually every household, market, and community, making urgent reforms critical to protecting Nigeria’s digital payment infrastructure.
House committee warns of rising POS, cryptocurrency fraud threatening Nigeria’s financial system
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Teen alleges torture by stepmother, loses hand
Teen alleges torture by stepmother, loses hand
A 19-year-old boy, identified as Friday, has accused his stepmother of subjecting him to torture that resulted in the amputation of one of his hands.
Friday’s account was made public in a viral video shared by Nigerian content creator Lucky Udu.
The teenager alleged that the incident occurred while his father was away, during which his stepmother accused him of having an inappropriate relationship with her and demanded that he confess.
He claimed she threatened him with a knife when he denied the allegation.
Friday further alleged that he was taken to a man who accused him of witchcraft and subjected him to torture, including burning his hands over charcoal.
He said his injuries later became infected, but his stepmother allegedly refused to take him to a hospital and instead forced him to continue working.
According to him, a passerby who noticed his condition alerted the police, leading to his rescue and the arrest of the stepmother.
He was subsequently taken to a specialist hospital where doctors amputated his hand due to the severity of the damage.
The incident has generated reactions on social media, with many Nigerians calling for justice and stronger protection for vulnerable children.
Authorities have yet to issue an official statement on the matter.
Teen alleges torture by stepmother, loses hand
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Cars Torched as South Africans Protest Alleged Nigerian ‘Igbo King’ Coronation
Cars Torched as South Africans Protest Alleged Nigerian ‘Igbo King’ Coronation
Violence erupted on Monday in KuGompo City, Eastern Cape, South Africa, following the reported coronation of a Nigerian national as a traditional king, prompting the Nigerian High Commission to issue a 10-point safety advisory urging Nigerians in the country to prioritise safety and maintain a low profile.
According to the advisory titled “Advisory to All Nigerians Living in the Republic of South Africa,” citizens were urged to exercise caution, limit movement, avoid interactions with unfamiliar persons, and suspend socio-cultural activities to reduce the risk of becoming targets amid rising tensions. The circular also advised Nigerians to respect local laws and customs and refrain from posting inflammatory content on social media that could escalate the situation.
What began as a peaceful protest over the alleged installation of Solomon Eziko as Igwe Ndigbo quickly escalated. Videos and images of the coronation circulated widely, sparking anger among residents and civic groups. Protesters torched vehicles, vandalised properties, and clashed with law enforcement. Police reportedly deployed teargas and rubber bullets to disperse the crowds, while fire services worked to contain the blazes.
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A man was stabbed during the unrest and taken to hospital. Authorities clarified that the victim was not linked to the demonstration, though some civic groups claimed one of their members was injured and also struck by a vehicle.
Several groups, including ActionSA, the Patriotic Alliance, and the civic movement March and March, joined traditional leaders in condemning the alleged coronation as illegal and unconstitutional.
- Athol Trollip, ActionSA Eastern Cape leader, said: “There is no constitutional provision for any foreigner, legal or illegal, to coronate themselves in the Eastern Cape. We support existing local kings, not Nigerian kings.”
- Steve Motale, Patriotic Alliance spokesperson, said: “We condemn this fake coronation. Even the Nigerian High Commissioner has denounced it.”
The Royal House of AbaThembu also denied involvement, calling social media claims linking King Buyelekhaya Dalindyebo to the coronation false and misleading.
The unrest follows recent anti-migrant protests in South Africa, where residents demanded stricter immigration policies targeting Nigerians and other foreign nationals. Analysts say the protests reflect broader xenophobic tensions and concern over foreign influence on local traditional structures.
The Federal Government of Nigeria continues to monitor the situation closely, urging citizens in South Africa to remain law-abiding, cautious, and vigilant until stability returns.
Cars Torched as South Africans Protest Alleged Nigerian ‘Igbo King’ Coronation
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El-Rufai Alleges Plot to Arrest Brother to Force Negotiation
El-Rufai Alleges Plot to Arrest Brother to Force Negotiation
Former Kaduna State governor Nasir El-Rufai has alleged that security operatives planned to arrest his elder brother, Bashir El-Rufai, if he returned to Nigeria for their mother’s burial — reportedly as a tactic to pressure him into negotiations.
In a video statement, the African Democratic Congress (ADC) chieftain said Bashir avoided attending the funeral to prevent detention. “My elder brother Bashir El-Rufai couldn’t make it because we learned there was a plan to arrest him… they believe if they get him, I will negotiate,” he revealed.
El-Rufai’s mother, Hajiya Umma El-Rufai, passed away in Cairo, Egypt, on Friday. Her remains were flown to Abuja and buried on Sunday. The burial coincided with El-Rufai’s ongoing legal troubles, including his arrest and detention by the Independent Corrupt Practices and Other Related Offences Commission (ICPC) over allegations of corruption and money laundering.
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The former governor was arraigned before a Federal High Court in Kaduna on March 24 on a 10-count charge. His case was adjourned until March 31, 2026, for hearings on pending applications, including his bail request. He was granted temporary release from ICPC custody to attend his mother’s funeral.
Observers say El-Rufai’s claims highlight concerns over the alleged use of family members as leverage in political and legal disputes, sparking debate over the conduct of anti-graft agencies in Nigeria. Analysts also note the potential political implications as El-Rufai continues to assert his innocence and challenge the legal proceedings against him.
El-Rufai Alleges Plot to Arrest Brother to Force Negotiation
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