Concerns as Naira scarcity hits Nigeria, POS charges now outrageous

There is a strong indications that Nigerians may experience a cheerless Christmas due to the scarcity of Naira which has resulted to exorbitant charges demanded by Point of Sale (POS) Operators.

AFRIPOST reports that the POS Operators charge exorbitant amount because of their inability to get the notes at banks.

This is even as the House of Representatives on Tuesday announced plans to investigate the activities of the Central Bank of Nigeria (CBN) that led to the nationwide scarcity of naira notes.

This resolution followed the adoption of a motion on a matter of urgent public importance regarding the need to address the cash crunch causing hardship in commercial banks across Nigeria.

The motion, sponsored by Hon. Uguru Emmanuel, sought the House’s intervention.

During his lead debate, Hon. Uguru highlighted the severe economic impacts of the CBN’s policies, which affect critical economic indicators such as gross domestic product, consumption, investment, money supply, and international trade.

“The House is cognizant that one of the major factors that stimulate economic growth is Consumer spending and business investment.
“The House is also cognizant that cash supply shortage in Commercial Banks have dire consequences on individuals and the nation’s economy.

“The House is aware that on 21st December, 2022, the Central Bank of Nigeria by a policy contained in a circular number BSD/DIR/PUB/LAB/015/073 reviewed the cash withdrawal limits across all channels to N500,000 and N5,000,000 for individuals and Corporate entities respectively, and which is not known to have been repealed.”

Hon. Uguru further criticized commercial banks for disregarding the withdrawal limit policy, stating that even current account holders struggle to withdraw as little as N50,000.

“The House is concerned that the Commercial Banks in the Country have jettisoned this policy as they can hardly give N50,000 to even current account holders.

“The House is disturbed that the cash crunch in Commercial Banks in the Country has become a clog in the wheel of economic activities, as entrepreneurs are subjected to long queue and sometimes spent a whole day or two in the Bank with loss of man-hour only to get N10,000 and in most cases go back home with nothing, subjecting these class of persons who have no access to point of sale (POS) that is mostly not applicable in some articles of trade especially in the rural areas to hopelessness.

“These therefore causes untold hardship to this uninformed populace most of whom are rural dwellers we are representing, hence this cry to protect their interest, as lives could even be lost for lack of funds (cash) to take their sick ones to hospital and sometimes nothing to buy food with.

“The House is alarmed that while the Commercial Banks have no money to dispense, the POS operators have in their disposals up to N1 million in mint to sell to their cronies and the public, and the pertinent question is: where do they get the money from?”

In an exclusive interview with Bisola Adepoju, a POS Operator in Ondo State, she said the rationale behind the exorbitant charges is the scarcity of the naira and charges been deducted by banks on transaction.

“We now charge ₦50 per ₦1000 transaction as against the ₦20. Because even the banks that we use their terminals also deduct money from us.

“If you go to banks, they don’t even issue a huge sum again, it is high time the CBN looks into the issue.

Meanwhile, banks in the northern Nigeria have reduced cash disbursement limits to N20,000, POS operators in Kaduna have expressed frustration over the ongoing cash shortage.

The operators revealed that the scarcity, which began in December, has significantly affected their business operations.

Adamu Amadu, a POS operator, explained that he sources cash from a businessman through transfers, albeit with added costs.

“We used to charge N100 per N10,000 transaction, but now we charge N200, and most of the time our cash finishes early due to the high demand. I don’t think Nigerians are ready for a cashless policy,” he said.

Similarly, another operator, Ibrahim Nur, stated that he could only serve customers requesting smaller amounts between N1,000 and N10,000 due to the acute shortage of cash.

Also, customers relying on POS services have expressed dissatisfaction with the rising service charges and limited availability of cash.

Bilkisu Moda recounted her struggles to withdraw money, visiting three different POS locations without success. She eventually managed to withdraw cash from an ATM after walking a long distance.

Jamila Sani, another customer, shared that she withdrew N5,000 for a service fee of N100, which she noted was consistent with past charges. However, she urged the government to address the situation urgently.

“The stress is too much for the masses, especially small business owners who rely heavily on cash for their daily transactions,” she said.

The ongoing cash crunch continues to strain both POS operators and their customers, underscoring the challenges of implementing a cashless policy in Nigeria.