Amid the lingering scarcity of the Naira in Nigeria, point-of-sale (PoS) operators have implemented a drastic 100% hike in their service charges, impacting businesses and consumers nationwide.
Elegede Segun, the secretary-elect of the Association of Mobile Money and Agent Banking Industry in Nigeria, revealed to Media Talk Africa that PoS operators have heightened their fees due to the ongoing Naira shortage. This move comes as a survival strategy, as operators grapple with the ripple effects of the currency crisis.
Segun emphasized that the Naira scarcity has severely impacted PoS operators, compelling them to escalate service charges to sustain their businesses. The shortage has led agents to increase their fees in response to the dire economic conditions they face.
In the face of restricted cash access from Deposit Money Banks, PoS agents have been constrained to explore non-traditional sources to secure funds. This has led to a significant surge in the charges paid by PoS agents when obtaining cash from alternative merchants, with fees skyrocketing from N800 to N1,600 for cash amounts of N100,000.
Acknowledging the complex situation, Segun remarked, “It has been difficult; our members have resorted to local arrangements to get cash. Due to the scarcity, our members have increased their fees. It is a demand-and-supply situation.”
The scarcity has led to a cascading effect, with banks imposing stringent limits on cash withdrawals at ATMs and over-the-counter services. With maximum withdrawals capped at N50,000, customers are finding it increasingly challenging to access the necessary cash for their transactions. This has triggered a surge in self-reliance practices, as individuals seek alternative means to navigate the prevailing scarcity.
Despite assurances from the Central Bank of Nigeria regarding the availability of banknotes, the impact of panic withdrawals has contributed to the sustained scarcity of the Naira, leaving Nigerians grappling with the far-reaching implications of the ongoing currency crisis.
