POS Operators Hike Charges Amid Nigeria’s Worsening Cash Scarcity
Operators of Point of Sale (POS) services have increased their charges as Nigeria experiences a resurgence of cash scarcity just weeks before the festive season.
In Lagos, Neusroom observed that Automated Teller Machines (ATMs) in various banks across Nigeria’s economic hub were not dispensing cash. At a Zenith Bank branch in Aguda, Ikeja, the state’s capital, the maximum dispensable cash per transaction was ₦500. Other banks in the area had no cash available when Neusroom conducted a visit earlier in the week.
The cash crunch has led POS operators to increase their charges as they claim that obtaining cash has become more difficult.
For instance, the charge for a ₦5,000 withdrawal, previously ₦100, has doubled to ₦200.
“It’s not our fault. I know what I went through to get the little cash I have, and it won’t even last me the day,” an operator, who preferred to remain anonymous, told Neusroom.
The directive from the Central Bank of Nigeria (CBN), which mandated Nigerian financial technology firms (fintechs) to charge a ₦50 stamp duty fee on transactions of ₦10,000 and above, has also contributed to the hike in POS charges. Many operators rely on Money Point and Opay POS machines.
“It’s not that there’s no money, but any amount I receive that’s ₦10,000 or above attracts a ₦50 charge,” said Mike, another POS operator in Lagos. He added that he now encourages customers to use their debit cards for withdrawals instead of making transfers.
Although bank officials contacted by Neusroom declined to comment, one report claimed that the scarcity was due to a limited cash supply from the CBN and a decline in cash deposits by customers.
However, earlier in December, the CBN, in a circular, stated that sufficient cash had been supplied to banks and directed customers to report any bank that fails to load its ATMs or provide cash over the counter.
Read this story from our 2022 reportage on cash scarcity:
POS owners tell Neusroom how the CBN cash withdrawal policy will affect their business
