Why the Nigerian Government Must Listen to Dr. Aguoru’s Call to Ban Use of Card PIN for Online Transactions
By Charles Ude, Esq.
Central Bank of Nigeria
The recent appeal by Dr. Kingsley Chibuzor Aguoru, a UK-based Nigerian Chartered Engineer and information security expert, to redefine online transaction protocols and ban the use of card PINs online deserves immediate attention. Dr. Aguoru, in a widely shared petition to the Central Bank of Nigeria (CBN) and the Economic and Financial Crimes Commission (EFCC), highlighted critical security flaws in Nigeria’s financial sector, calling for stronger oversight similar to the UK’s Financial Conduct Authority (FCA).
Dr. Aguoru’s appeal, which has captured the attention of Nigeria’s financial and cybersecurity sectors, stems from his extensive experience and a personal history with card-not-present (CNP) fraud. His professional background in technology and finance has made him a leading advocate for a safer financial environment in Nigeria.
In his petition, Dr. Aguoru urged the CBN and EFCC to halt the use of card PINs for online transactions, warning of the risks posed to consumers. According to him, while POS transactions use secure, encrypted layers to protect PINs, online transactions lack such protections, exposing users to threats like network sniffing and keyloggers. “A web browser cannot protect the input device nor prevent network sniffing, leaving consumers vulnerable to fraud,” he stated.
Dr. Aguoru also voiced concerns about Nigeria’s National Identity Management Commission’s (NIMC) partnership with MasterCard, which allowed the company’s logo to appear on the national identity card. He argued that national IDs should remain purely governmental, free from corporate branding, which could raise ethical concerns about privacy and sovereignty.
His advocacy is deeply personal. In 2005, Dr. Aguoru fell victim to a CNP fraud scheme while operating a business similar to PayPal. The incident, which led him to lose tens of thousands of pounds, inspired him to pivot from Software Engineering to Information Security. While researching CNP fraud, he proposed dynamic one-time passwords (OTPs) instead of static passwords for online transactions—a concept he later implemented in his own payment network, Paymenex, as “SMSVerify” (now known as 3Widentity).
Dr. Aguoru is now calling for a specialized regulatory body, similar to the UK’s FCA, to oversee Nigeria’s financial market infrastructure and consumer protection. This Financial Services Authority (FSA) would work alongside the CBN and EFCC, with rule-making and investigative powers dedicated to protecting the financial interests of Nigerian consumers and businesses.
Given Dr. Aguoru’s expertise and commitment to financial security, it is crucial that Nigerian authorities act on his recommendations. Establishing a regulatory body focused on consumer protection and banning card PIN use for online transactions could help prevent widespread fraud and secure Nigeria’s financial future.
As a concerned legal practitioner, I believe swift action is essential to prevent Nigerians from falling victim to these vulnerabilities.
Barr. Ude Esq., Legal practitioner and public affairs analyst, writes from Abuja.
