•Ubani
A Senior Advocate of Nigeria, Dr. Monday Ubani, has raised the alarm over the growing abuse of Point of Sale, POS, machines by criminal syndicates, warning that kidnappers, fraudsters, and money launderers are now exploiting the system to move billions of naira beyond the reach of law enforcement.
In a statement titled, “The Urgent Need to Regulate POS Transactions in Nigeria’s Financial Ecosystem”, Ubani accused financial regulators of allowing a dangerous loophole to fester, transforming what was once a tool for financial inclusion into a channel for untraceable, high-volume crime.
“What we are seeing now is frightening. POS terminals have become the preferred method for criminals to move large sums of money anonymously. Kidnappers now demand ransom via POS, and fraudsters launder stolen funds through agents who collect and disburse without verifying identities,” he said.
Ubani revealed that his recent interaction with a High Court Judge in Eastern Nigeria exposed the scale of the problem, reports Vanguard.
According to him, the judge lamented the number of criminal cases involving untraceable POS transactions that had failed in court due to a lack of evidentiary trail.
“In one disturbing case, the family of a kidnap victim was forced to pay ₦90 million through POS transactions. When the matter came before the court, investigators couldn’t trace the funds. The agents had no documentation of the recipients. The money trail vanished, and justice was crippled,” Ubani disclosed.
He condemned the current lack of regulatory oversight that allows thousands of POS operators to function without proper identity verification, fixed addresses, or adherence to Know Your Customer (KYC) protocols.
“It is a ticking time bomb. Most POS agents are operating like financial mercenaries. They’re not required to verify identities or keep records. In effect, they’re running anonymous cash distribution centres for criminals,” he warned.
Ubani called on the Central Bank of Nigeria to take immediate action by enforcing strict licensing, transaction limits, and mandatory linkage of all POS devices and bank accounts to operators’ Bank Verification Numbers (BVN) and National Identification Numbers (NIN).
“If a POS operator cannot tell you who received a ₦5 million transfer, we have a national problem. This system has become a dark hole where accountability disappears,” he said.
He further recommended that no POS withdrawal should be allowed without verifiable identification such as a NIN slip, voter’s card, driver’s licence, or international passport.
He further insisted that POS agents must retain digital or photocopied records of such documents and the photograph of the customer — materials that must be made available to law enforcement on demand.
“POS agents who fail to verify and record customer identities should be held liable. If their negligence aids a crime, they should be prosecuted,” he declared.
Ubani also called for the creation of a centralised database of all POS transactions accessible to security agencies such as the EFCC, DSS, Police, and the Financial Intelligence Unit, NFIU.
This, he said, would enable real-time monitoring and flag suspicious activity before it snowballs into organised crime.
“The security implications are grave. We are watching a shadow financial system grow unchecked in plain sight. It’s not just about fraud — it’s about national security,” he said.
He further urged the CBN and fintech stakeholders to deploy AI and geo-fencing technology to track POS activity, particularly in rural or high-risk zones with abnormal transaction volumes.
He emphasised the need for nationwide public education campaigns to help citizens understand the risks and demand proper verification from agents.
“The average Nigerian needs to know that casual POS use can make them complicit in a crime. Communities must be alert. Ignorance is no longer an excuse,” he said.
