Naira Scarcity Triggers 100% Increase In PoS Service Costs Nationwide

Point-of-sale operators nationwide have implemented a 100% increase in their service charges, a direct response to the prevailing Naira scarcity.

The newly elected secretary of the Association of Mobile Money and Agent Banking Industry in Nigeria, Elegede Segun, confirmed this development during a conversation with DAILY POST on Tuesday.

Attributing the surge in fees charged by PoS operators to the ongoing Naira shortage, Segun highlighted that PoS operators are particularly affected by the scarcity, compelling them to raise fees in order to sustain their operations.

Formerly the publicity officer of the Association, Segun elucidated that their members had to explore alternative channels for cash since Deposit Money Banks had imposed limits on cash withdrawals, ranging from ₦20,000 to ₦50,000.

He further revealed that the charges PoS agents incur to obtain cash, say ₦100,000, from alternative sources like filling station operators have surged from ₦800 to ₦1,600.

Acknowledging the challenging circumstances, he commented, “It has been difficult; our members have resorted to local arrangements to get cash.”

Due to the scarcity, Segun explained that members have adjusted their fees in response to the demand-and-supply dynamics. With banks limiting cash withdrawals both at ATMs and over-the-counter, the situation has become more challenging for customers, especially with a maximum withdrawal cap of ₦50,000.

“Banks are not providing sufficient cash to customers, and people are resorting to self-help amid the scarcity,” he added.

Despite the Central Bank of Nigeria’s assurance regarding the availability of banknotes, the persisting Naira scarcity has left Nigerians grappling with the situation.