Chairman of the Committee, Hon. Olufemi Bamisile, disclosed this on Monday during the panel’s resumed investigative hearing in Abuja, stating that weeks of interaction with regulators, security agencies, fintech firms, and digital-asset stakeholders exposed “deep gaps” threatening the integrity of Nigeria’s digital financial ecosystem.

Key concerns highlighted include:

Surge in fraud through unregistered POS agents, cloned terminals, anonymous transactions, and weak KYC compliance   

Some POS operators illegally offering cryptocurrency and digital-asset services without licences   

Fraudulent companies registered at the Corporate Affairs Commission (CAC) using stolen BVN and NIN details to open multiple bank accounts and launder funds   

Storage of sensitive customer data on foreign servers, hampering real-time regulatory oversight and law-enforcement action 

Bamisile described these developments as posing “serious red flags” around consumer protection, money laundering, terrorism financing, and the misuse of payment instruments.

He also criticised inconsistent regulatory practices, particularly uneven enforcement of geotagging and agent-profiling rules, which he said disadvantage legitimate operators while enabling criminals.

While acknowledging challenges faced by genuine players, including overlapping mandates and multiple compliance demands from different agencies, the Chairman stressed that the probe is collaborative, not adversarial.

“This engagement is about honest conversations and clarity. We want legislation that delivers a harmonised regulatory framework, stronger safeguards, better consumer protection, and responsible innovation,” he said.

The Committee will continue its hearings in the coming weeks and is expected to submit comprehensive recommendations to the House of Representatives for urgent legislative action.