Lagos PoS operators hike fee over Naira scarcity

The resurgence of naira scarcity in some parts of the country, especially in Lagos, Nigeria’s economic capital is biting hard on the people as Nigerians prepare to celebrate both the Christmas and the New Year festival in a few weeks’ time.

The development is coming despite the assurance of the Central Bank of Nigeria, CBN, on the availability of the currency notes.

Like the cash crunch of December last year and the first quarter of 2023 due to the implementation of the failed Naira redesign policy, the resurgence of the scarcity has forced many Point of Sales (PoS) to increase their commission on every transaction, thereby compounding the woes of Nigerians.

While Banks have pegged maximum withdrawal limits from N20,000 to N50,000, transaction fees through Point-of-Sale operators, PoS, have also doubled due to the Naira scarcity.

PoS charges increased by 100 per cent as it moved to N200 per N5,000 in the nation’s capital; the same situation is reported nationwide.

ATMs of many Banks visited by Blueprint in different parts of Lagos were either not dispensing cash or were witnessing long queues.

According to the Secretary-Elect of the Mobile Money and Agent Banking Industry, Elegede Segun, PoS vendors have resorted to local arrangements to get cash, hence the hike in commissions on services provided, especially cash withdrawals

“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. The maximum withdrawal has been pegged at N50,000, which cannot serve one customer’s demand.

Meanwhile, while the CBN insisted the economy has adequate supply of the currency, Dr. Uju Ogunbunka, President of the Bank Customers’ Association of Nigeria, insisted there is a real naira scarcity plaguing the country.

He said CBN’s explanation that panic withdrawals of large volumes of cash from various its branches by Deposit Money Banks (DMBs), was responsible for the scarcity is not an excuse for the prolonged scarcity.

“The CBN needs to intensify their communication network and assure Nigerians that there is no reason to hoard Naira notes”, he stated.

Former President and Chairman of the Council of Chartered Institute of Bankers, Prof Segun Ajibola, faulted the reason given by the CBN for the Naira scarcity.

“If the scarcity is artificial through currency holding/hoarding, it should be easy to pin this down. But I wonder if anybody would hoard Naira because it is not a convertible currency that can be speculated upon.

“And on the claim of much withdrawal for the festivities, 2023 is not the first year Nigerians would celebrate Christmas. I guess something is still wrong somewhere outside this literal guesswork.