The Central Bank of Nigeria (CBN) has responded to the increase in service charges by Point of Sale (POS) agents.
According to the apex bank, it is currently in discussions with the POS operators and is actively working to find a resolution to the matter.
Isah AbdulMumin, CBN Director, Corporate Communications, in a chat with Guardian said: “Yes, the apex bank is aware of the move by POS agents to increase transaction charges. We at the CBN understand their plight. We know their challenges but we are engaging with them to find a common ground.”
Though the CBN maintained it has not approved any service charge hike by the agents, but the operators argue that the unfavorable business environment has forced them to raise their fee.
Information Nigeria reports that the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) recently announced a new fee structure, effective from July 17, 2023.
Withdrawals ranging from N1,000 to N2,400 will incur a charge of N100, while withdrawals from N3,500 to N4,000 will have a N200 charge.
The charges continue to increase in increments based on the amount withdrawn, up to N18,000-N20,000, which will attract an N800 charge.
Similarly, deposits are subject to charges based on the amount, starting from N1,000 to N4,900 incurring a N100 charge, and increasing gradually up to N41,000-N50,000, which will be charged N600.
The announcement of these increased charges has caused concern among Nigerians, especially those in rural areas who heavily rely on PoS agents for quick withdrawals and deposits.
Kayode Salako, Chairman of the Concerned POS Operators in Nigeria, criticized the fee hike as being exorbitant and harmful to many Nigerians already facing financial difficulties.
“While we agree that the new cashless and fuel subsidy removal policies have greatly affected businesses, we think the best thing, for now, is for the association to fight for how to make business easy for agents and the masses by fighting for some preference from the government to at least let the PoS operators have access to cash if it would take the bank to increase their daily withdrawal limit,” Salami said.
Although the new charges were not yet operational in Abuja, the nation’s capital, and Lagos State, the commercial capital, findings showed that operators in other parts of the country had effected the changes.
Favour Asagwara, a POS attendant in Abule-Egba area of Lagos State, confirmed that old service charges were still obtainable in the area.
“It’s still N100 for N5, 000; N200 for N10, 000; N300 for N15, 000 and N400 for N20, 000 and so on. It was only during the new naira policy that the increase was last effected,” she said.
