Point of Sale (PoS) service providers nationwide are increasing fees for cash deposits and withdrawals by more than 50% in certain areas, citing a scarcity of naira in banks.
According to checks by TheWitness, some POS operators in places such as Lagos and Abuja have increased their transaction charges, adding that it’s becoming increasingly difficult for them to access the naira from their banks or ATM.
In Karu in Abuja, for example, a POS operator told a TheWitness analyst that he now charges N250 for N10,000 instead of N200, indicating a 25% increase in charges transaction.
Meanwhile, in the same Abuja in Aya junction, Ms Felicity, another POS service salesperson, said she charges N200 for N5,000 and N300 for N10,000, showing a swooping 100% and 50% increase in charges transaction.
Similarly in Lagos, an operator, Mr Joshua who spoke to TheWitness said he can no longer charge the usual N100 for N5,000 due to cash scarcity.
He now charges N200 for N5,000 and N300 for N10,000, indicating a 100% and 50% increase in transactions depending on the amount of money transacted from him.
The operator, whose kiosk is in Iyana Ipaja, Lagos, said the process of getting cash from banks and ATMs is becoming increasingly difficult.
According to him, banks are withholding cash, forcing POS merchants to buy money at a higher cost than usual.
He said some banks “only release N20,000 per day”, and due to an increase in withdrawal as the festive period draws nearer, the cash tightening makes it difficult to charge at the same price.
Speaking along the same line, Ms Felicity in Abuja noted that security guards in the bank don’t even allow POS operators to access the ATM, adding that it is usually reserved for POS non-operators.
She said,
Also speaking along the same line, Mr. Rabs POS Services at Federal Ministry of Works and Housing Estate, Karu, Abuja, said,
On Wednesday, December 13, the CBN’s acting director of Corporate Communications, Hakama Sidi-Ali, said in a statement that there is sufficient cash in circulation.
In addition, she held those deliberately hoarding cash responsible for the shortage, tying it to the challenges stemming from the naira redesign policy.
Even though the apex bank has ordered that both the new and old naira notes be spent simultaneously until further notice, many still fear that a policy reversal can be announced anytime by the apex bank, thus hoarding the new naira notes in circulation.
Also, due to the holiday season, a lot of people are hoarding the cash with them to spend for the Christmas and New Year holidays.
Consequently, this has increased by cash withdrawal as most Nigerians tend to spend more on shopping, travelling and other expenses for the holiday.
The CBN’s acting director of Corporate Communications, Hakama Sidi-Ali, also noted this phenomenon as one of the factors responsible for the cash crunch during this period.
Meanwhile, she assured Nigerians of sufficient cash to meet daily transactions for the holiday period.
She said,
