CBN kicks as PoS operators hike charges without approval

An alleged illegal hike in service charges by Point of Sale (PoS) operators has drawn the ire of Nigerians, who are gasping for breathe, especially with the gale of new charges, taxes and soaring inflation.

Beyond the new charges and taxes, the peeved Nigerians who are also burdened by rising food and transportation costs, saw absolutely no need for the illegal charges hike, which has already pitched the operators against the Central Bank of Nigeria (CBN).

While the CBN insists that it has not sanctioned a set of increases in the service charges by PoS agents, the operators said the unfriendly business environment has necessitated an upward review of their charges.

The Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) had announced that with effect from July 17, 2023, to withdraw N1,000-N2, 400, a charge of N100 would be paid while withdrawal of N3,500-N4,000, attracts a charge of N200; N4,100-N6,400 (N300); N6,500-N7,900 (N400); N8,000-N10,900 (N500); N11,000- N14,000 (N600); N14,500-N17,900 (N700) and N18,000-N20,000 (N800).

Deposits from N1,000-N4,900 attract a charge of N100; N5000-N10,900 (N200); N11,000-N20,900 (N300); N21,000-N30,900 (N400); N31,000-N40,000 (N500) and N41,000-N50,000 (N600).

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The announcement by the PoS operators to jack up their charges jolted Nigerians, especially rural dwellers who now almost entirely depend on the services of PoS agents to make quick withdrawals or deposits.

Even the Concerned POS Operators in Nigeria, through their Chairman, Mr. Kayode Salako, had described the increase as outrageous and anti-people, saying the charge would compound the woes of many Nigerians.

He said: “While we agree that the new cashless and fuel subsidy removal policies have greatly affected businesses, we think the best thing, for now, is for the association to fight for how to make business easy for agents and the masses by fighting for some preference from the government to at least let the PoS operators have access to cash if it would take the bank to increase their daily withdrawal limit.”
Yesterday, the CBN told The Guardian that it was still engaging the POS operators and would soon find a way around the issue.

The CBN Director, Corporate Communications, Dr. Isah AbdulMumin, who spoke via telephone, said: “Yes, the apex bank is aware of the move by PoS agents to increase transaction charges. We at the CBN understand their plight. We know their challenges but we are engaging with them to find a common ground.”

Although the new charges were not yet operational in Abuja, the nation’s capital, and Lagos State, the commercial capital, findings showed that operators in other parts of the country had effected them.

A PoS attendant in Abule-Egba area of Lagos State, Favour Asagwara, confirmed that old service charges were still obtainable in the area.

“It’s still N100 for N5, 000; N200 for N10, 000; N300 for N15, 000 and N400 for N20, 000 and so on. It was only during the new naira policy that the increase was last effected,” she said.

However, in some parts of Ogun State, the operators have continued to milk their customers, especially in areas where there are limited or no trace of banks.

The Guardian can confirm that in Ifo, Arigbajo, Apomu, Papalanto, Ewekoro, Itori, Wasinmi and its environs, the PoS operators were charging as high as N400 for N10,000, while N200 was charged for withdrawing N5,000 as far back as a fortnight ago.

Operators in Enugu State have also raised their charges. From N100 per transaction of N10,000, they now collect N200 per transaction of N10,000 and this is applicable for both withdrawal and deposit.

One of the agents in Enugu, who identified herself simply as Ugochi, stated that circumstances beyond their control forced the new increase, stressing that they were not making much gains out of it.