The Speaker of Nigeria’s House of Representatives, Rep. Abbas Tajudeen, has inaugurated a special ad-hoc committee tasked with evaluating the economic, regulatory, and security dimensions of cryptocurrency and Point-of-Sale (PoS) operations in the country.

During the inauguration ceremony held Monday in Abuja, Speaker Abbas highlighted growing concerns over cybercrime, fraud, and consumer exploitation in Nigeria’s expanding digital financial space as the driving force behind the committee's formation.

He acknowledged the resilience of Nigeria’s economy - especially its recovery from multiple recessions and steady growth in non-oil sectors - suggesting that this creates a fertile environment for the growth of cryptocurrency trading.

“Given our economic resilience, it is reasonable to believe that the cryptocurrency market can thrive in Nigeria,” Abbas stated.

However, the Speaker also cautioned against the risks posed by digital assets. He pointed to their susceptibility to abuse in terrorism financing and money laundering due to their opacity, weak regulation, and limited oversight.

“The absence of clear regulations - alongside the volatility and complexity of these technologies - necessitates action. The House of Representatives sees the need for regulatory and consumer protection measures to govern Virtual Asset Service Providers, including cryptocurrencies and related assets,” he said.

Abbas emphasized the importance of the ad-hoc committee as part of the House’s oversight responsibilities, noting that it would be instrumental in drafting legislation for a robust regulatory framework for digital currency adoption.

He explained that the committee's core mandate involves conducting public hearings to gather input from stakeholders, which will inform the House’s approach to developing effective legislation on digital currencies.

Reaffirming the 10th House of Representatives’ commitment to protecting the country from harmful financial developments, Abbas stressed the need for a national-interest-driven approach and urged committee members to remain patriotic and diligent in their work.

In his address, the committee’s chairman, Rep. Olufemi Bamisile (APC-Ekiti), underscored the national importance of their assignment, which seeks to strike a balance between fostering financial innovation and ensuring national security.

“We are charged with reviewing the implications - economic, regulatory, and security-related - of cryptocurrency and PoS operations in Nigeria,” Bamisile said.

He noted that while digital finance is transforming global economies, Nigeria’s rapid growth in cryptocurrency and PoS usage brings both potential and peril. Opportunities for innovation and financial inclusion exist, but so do significant risks such as cybercrime, fraud, and regulatory instability.

To address these challenges, Bamisile said the committee would work towards creating a legislative and regulatory framework that supports innovation while safeguarding citizens and preserving the financial system’s integrity.

The committee plans to collaborate with major regulatory and enforcement bodies including the Central Bank of Nigeria (CBN), Securities and Exchange Commission (SEC), 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.

He assured that the committee would adopt an inclusive and evidence-based approach, engaging various stakeholders - regulators, banks, fintech firms, civil society organizations, and security agencies - through public hearings aimed at gathering diverse views to inform their recommendations.