PoS operators slash charges over availability of cash as CBN issues fresh warning

The relative glut of naira notes has compelled Point of Sale (PoS) operators to cut down on their charges to almost the same as the Central Bank of Nigeria (CBN)'s approved rates before the cash crisis.

BusinessDay reports that the CBN confirmed the circulation of banknotes from its branches to banks across the country as part of efforts to ease the cash crunch in the system.

Nigerians who patronised PoS operators recently say they now pay close to standard charges approved by the apex bank before the naira redesign policy took the price to the roof.

According to them, they were shocked to see that the charges had drastically come down.

They said they paid N500 for N5,000 transactions and N1000 for every N10,000 transaction.

Since the beginning of the cash crisis in February this year, Nigerians have relied on PoS operators for cash following long queues at ATMs and withdrawal limits imposed by the CBN.

The Nigeria Inter-Bank Settlement System (NIBBS) data states that PoS transactions increased to N807.16 billion in January 2023 because of the naira redesign policy and cash crisis.

PoS transactions rose to 40.68% year-on-year from N573.72 billion in January 2023. Total cashless transactions in Nigeria increased by 45.41% year-on-year to N39,58 trillion in January 2023.

The development comes as the CBN reiterated its commitment to sanction PoS operators charging exorbitant prices or selling the naira.

The apex bank, on several occasions, said PoS charges remain pegged at 2% for all transactions, and any operator found guilty would be prosecuted.

At the height of the cash crisis, PoS operators charged as high as 30% on all withdrawals.