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Business News of Tuesday, 17 January 2023


PoS operators rule out service charge hike

PoS machine PoS machine

The Association of Mobile Money and Bank Agents in Nigeria has said there are no plans to increase service their charges following the Central Bank of Nigeria’s decision to review cash withdrawal limits for Automated Teller Machines and over-the-counter withdrawals.

This was disclosed by the National President, AMMBAN, Victor Olojo, in an exclusive chat with The PUNCH on Sunday.

There had been insinuations that the new CBN withdrawal policy would lead to an increase in fees charged by the PoS agents.

The new CBN cash limits policy, among other things, attract processing fees of five per cent and 10 per cent respectively, for individuals and corporate entities, effective January 9, 2023.

But reacting, Olojo explained the CBN was aware of the implications and works currently in the pipeline on possible solutions.

He stated that despite an increase in the cost of production caused by the withdrawal limit, bank agents had resolved to register their businesses as corporate entities rather than increase service fees.

He said, “Our current stand is that there won’t be an increase in the price of service charge because we are currently in talks with the CBN in order to work out an avenue that will enable agents to access more funds and that will be resolved very soon.

“Currently we are limited to the threshold of N500,000 but in case the need is more than that, then it becomes an issue and what that implies is the agent naturally will transfer the cost to the customer and Nigerians will be the ones to pay for that extra five per cent that banks charge.

“The CBN is mindful of that and it is working out something and soon, we should have feedback on a new arrangement that will enable agents to get more funds to carry out their business.”

Giving an update on the association’s adjustment to the policy, the PoS operators’ union president said, “So far so good, Nigerians are adapting fast to the new limits. For us operators, we are still trying to adjust; it has not been easy for us. A number of our members have not registered business entities.

“So, we align with the CBN and we understand that Nigerians need to go cashless and we are encouraging our members to ensure that they also get registered so that they will be able to access more funds because as an individual entity, you won’t get as much compared to when you are registered as a business.”