Cash-strapped Nigerians are thronging point-of-sale shops despite over 20 percent charged on every withdrawal
Helpless citizens have continued to lament the effects of the naira scarcity in the country.
Respondents who spoke with Dataphyte narrated how point-of-sale agents, who usually serve as cushions during tough times, have turned into full-scale merchants.
A survey of different locations shows that Nigerians pay between N200 and N300 for every N1000 withdrawal, a development that has been greeted with mixed feelings.
A respondent in Abuja, who identified herself as Tunde Adebayo, noted that he walked for about two hours while seeking cash but did not get any.
“I trekked for about two hours in search of cash, but I could not get any. The person I got asked me to pay N2000 charge for N5000, but I could not afford to pay that. So, I trekked back home with nothing. I, at some point, begged a man for N200 naira so at least I could get something to eat that morning,” he told Dataphyte.
Another respondent in Abuja, Nkechi Joy, stated that she had set out to withdraw but failed because she was asked to pay N300 charge for N1000.
“I was asked to pay N300 charge for N1000, and I could not afford it because N1000 is the only money in my account. I had to return home, hoping for the best,” she told Dataphyte.
Nigerians besiege POS terminals
A market woman in Lagos, who identified herself simply as Yetunde Adedeji, narrated how another woman came to the market begging for food because she could not find anywhere to withdraw her money. When the helpless woman got a POS agent, the charges took almost all the money she withdrew.
According to Adedeji, “A woman came here begging us for help. Her husband had old notes, but they could not spend them. The little money they had, the POS charges took. If they had withdrawn, they would have been left with nothing. I had to give her rice and oil that I could afford,” she told Dataphyte.
A dealer in cocoa products, who identified herself simply as Hannah Majekodunmi, lamented how she had to withdraw N300,000 with N60,000.
“I just sent home N300,000 for purchases, but I was called back to say that the POS charge was N60,000. Can you imagine that kind of development? How will I sell the product?” she quipped.
Dataphyte observed that despite the high charges, many Nigerians still throng POS operators’ shops, with the hope of withdrawing as little as N2000.
A respondent, who was waiting for the possibility of withdrawing money, told Dataphyte that he had no choice but to pay the high POs charge, as that was the only hope of having money for his children’s upkeep.
At POS terminals in Kubwa, Wuye, Utako, Zone 5, and Gwagwalada, all in Abuja, the situation is the same.
In Oshodi, Isolo, Victoria Island, Obalende, Cele in Lagos, the situation also remains the same.
CBN threat not working
The Central Bank of Nigeria (CBN) had threatened to arrest POS operators charging above N200 for N10,000. This threat is, however, failing to have any impact on the operators as high charges have failed to stop.
The central bank had noted that security operatives would be active in checkmating the operators. However, checks show that even with the presence of security operatives close to POS shops, there has been no effective reduction in the amount paid as charges for withdrawals by Nigerians.
Why we charge higher rates-Operators
POS operators, who spoke with Dataphyte, opined that they charged higher rates because they had to go the “extra mile” to get the money they disbursed.
An operator, who agreed to speak on the condition of anonymity due to the issue’s sensitivity, noted that the time it took to withdraw from banks and sometimes get the money from traders was the main reason for the high charges.
“We do not find it easy. Getting the cash comes at a very high cost. We go to banks queuing for a day or more to get little money. Sometimes, we also pay traders or business people to give us cash. So we are already paying charges, which is an issue, and you cannot blame us entirely.
Dataphyte visited many point-of-sale agents in Abuja. Two of the over 20 point-of-sale machine operators visited had cash, with charges ranging from N200 to N300 for every N1,000. Two of these operators put a collectible cash limit at N2000, citing little cash available to them.
Although President Muhammadu Buhari had noted that N200 old notes would be accepted as legal tender alongside the newly designed naira notes, these have failed to cushion the naira scarcity, with Nigerians at the mercy of merchants.
Experts had advised the government to rethink the policy while ensuring a more systematic approach to its implementation to cushion the continued hardship experienced by Nigerians.
President Buhari had promised to ensure amelioration of the pains experienced by Nigerians, a promise yet to be kept.