As Nigeria grapples with a severe cash shortage, Point of Sale (PoS) operators across the country have dramatically increased transaction fees, in some cases doubling charges for cash withdrawals. The move has left many Nigerians with no choice but to pay the exorbitant fees, as banks continue to ration cash disbursements.
In major cities like Abuja and Lagos, PoS operators are now charging as much as N300 to withdraw just N5000, a significant increase from the typical N100-200 fee for withdrawals up to N10,000. The operators blame the hike on difficulties accessing cash from banks and ATMs.
Investigations reveal that some PoS operators have been draining ATMs of cash using multiple bank cards, while certain bank staff have been selling cash directly to these operators. This has left many bank customers with no option but to turn to PoS operators for their cash needs.
The Central Bank of Nigeria (CBN) has recently ordered banks to prioritize cash distribution through ATMs and has warned against disbursing cash to PoS operators and naira hawkers. Banks found engaging in such practices will face penalties ranging from 10-15% of the value of the diverted cash.
With 3.73 million registered PoS terminals and 2.689 million deployed nationwide, these operators have become ubiquitous, acting as micro-banks on nearly every street corner.
As the holiday season approaches, the CBN anticipates an increase in cash demand and is urging banks to ensure efficient and responsible cash disbursement to the public. The apex bank has pledged to conduct spot checks and mystery shopping exercises to enforce compliance and prevent naira abuse.
The current cash crunch and the consequent spike in PoS fees have left many Nigerians frustrated and struggling to access their own money.