POS Service Charges Soar by 100% Amid Naira Scarcity

Due to the prevailing scarcity of Naira, Point-of-Sale (PoS) operators across states in Nigeria have reportedly increased their service charges by a staggering 100%, leaving consumers grappling with higher transaction fees.

Elegede Segun, the secretary-elect of the Association of Mobile Money and Agent Banking Industry in Nigeria (MMABI), confirmed this unsettling development.

Segun outlined the impact of the Naira shortage on PoS operators, noting that they are among the worst affected by the ongoing currency scarcity. In order to navigate the challenging economic landscape, PoS agents find themselves compelled to raise fees to sustain their operations.

The former publicity officer of the Association shed light on the difficulties faced by their members, explaining that limited cash withdrawals from Deposit Money Banks (DMBs), with limits set at N20,000 and N50,000, have forced agents to seek alternative sources. To obtain cash amounts like N100,000, PoS agents reportedly resort to local arrangements with alternative merchants, such as filling station operators, resulting in a significant spike in charges from N800 to N1,600.

Segun stated, “It has been difficult; our members have resorted to local arrangements to get cash. Due to the scarcity, our members have increased their fees. It is a demand-and-supply situation. Most banks have a limit on cash withdrawals on ATMs and over-the-counter.”

Highlighting the growing challenge faced by consumers, he added, “The maximum withdrawal has been pegged at N50,000, which cannot serve one customer’s demand. As it is, banks are not giving out enough cash to customers. People are seeking self-help amid the scarcity.”

Despite reassurances from the Central Bank of Nigeria (CBN) regarding the availability of banknotes, the Naira scarcity persists, causing continued distress among Nigerians who grapple with the consequences of increased service charges in PoS transactions.