IN DETAIL: Naira scarcity drives up transaction fees at POS points across Nigeria

Point of sale (POS) operators in Nigeria have increased transaction charges as the scramble for cash persists in banks across the country due to the scarcity of the new naira notes.

The Central Bank of Nigeria (CBN) has continued to advise Nigerians to use POS terminals — a critical aspect of its cashless policy — as alternative means for transactions.

The apex bank announced the naira redesign policy in October 2022.

Following the unveiling and commencement of the circulation of the redesigned naira notes on December 15, 2022, the CBN ordered deposit money banks (DMBs) to stop issuing the new notes over the counter.

Although the policy is adjudged to be economically beneficial in the long run, it has immediately caused a massive cash shortage nationwide.

Despite the CBN ordering over-the-counter withdrawals of the new naira notes to ease up queues at automated teller machines (ATMs), and also extending the deadline for the use of old ones, the scarcity persists.

Consequently, Nigerians, in their search for cash, now face an unpalatable dilemma: to endure a huge throng in banking halls/ATMs or pay high transaction fees to POS operators.

POS OPERATORS HIKE FEES

On Friday, TheCable reporters observed that some POS operators in the Ikorodu area of Lagos shut down services due to a lack of cash.

One of the merchants said the scarcity is forcing them to increase charges as it has become difficult to obtain cash from banks.

TheCable understands that these hikes in POS fees are prevalent across the country.

“I live in Oyo but I had to go to Ibadan on Monday. I was charged N2,000 for every N10,000 before I later found someone in the market who did N400 for N20,000 on old notes and N800 on new notes,” Victoria Peace said, narrating her ordeal.

“On Wednesday, I paid N500 for N5,000. And the maximum amount you can withdraw from their POS is N5,000.

“As at yesterday, it is now N1,000 for N5,000.

“People are fighting each other at the ATM stands so, I can’t even go there. Banks are also becoming fraudulent and the network isn’t allowing us to pay for stuff with our cards.”

Another affected person (name withheld) said most POS terminals in Kano have shut down, adding that not all of them have the new notes.

“It is very difficult to find one with money and even if you find one, they may not be able to give you all the money you want to withdraw,” the Kano resident said.

TheCable also understands that some operators, especially in Lagos and Kaduna, are rationing the cash in their possession, and rejecting withdrawals above N5,000.

To better understand the situation, TheCable reporters compiled POS charges from various states across the country.

LAGOS

Area: Iyana Ipaja.

Transaction fee: N500 per N5,000.

---

Area: Ikotun

Transaction fee: N500 per N2,000.

---

Area: University of Lagos.

Transaction fee: N2,000 for N5,000.

---

Area: Obawolẹ, Ifakọ-Ijaiye.

Transaction fee: N300 per N3,000.

---

Area: Ogba.

Transaction fees: N700 for N5,000; N1,400 for N10, 000.

---

ABUJA

Area: Mabushi

Transaction fee: N1,500 for N28,000. After negotiation, N900 was charged for the withdrawal.

---

Area: Airport Road, Jabi.

Transaction fee: N200/N250 for N2,000

---

Areas: Gwagwalada, and Piwoyi, FCT.

Transaction fee: N1,000 per N10,000.

---

IMO

Area: Owerri.

Transaction fees: N2,000 per N10,000; N200 per N1,000.

---

ONDO

Area: Akure.

Transaction fee: N300 per N1,500.

---

IBADAN

Areas: Oke-Ado, and Ojoo

Transaction fee: N100 per N1,000.

---

Area: Orogun

Transaction fee: N500 for N5,000

---

ANAMBRA

Area: Awka

Transaction fee: N200/N300 per N1,000.

---

KADUNA

Area: Most locations within Kaduna metropolis

Transaction fees: N200 per N3,000; N300 per N5,000; N700 (and above) per N10,000.

---

OGUN

Area: Alagbole

Transaction fee: N100 per N1,000; N300 for N2,000.

---

Area: Sango Ota

Transaction fee: N1,000 for N5,000

---

EKITI

Area: Ekiti State University, Iworoko.

Transaction fee: N100/N150 for N1,000.

---

NIGER

Areas: Barikin Sale, Chanchaga LGA; London street, Bosso LGA.

Transaction fees: N1,000 for N10,000; and N10,000 for N100,000

---

KANO

Area: Karkasara in Tarauni LGA.

Transaction fee: N300 for N3,000; N800 for N10,000.

---

DELTA

Area: Ugbuwangue, Warri
Transaction fee: N2,000 per N10,000