…lament, say excessive bank charges, policies killing our businesses

‘We can’t access our money in banks‘

By Mujeebah Shittu

The persistent cash scarcity in commercial banks, compounded by the imposition of a N50 transaction charge on Point of Sales (PoS) operators, has sharply escalated withdrawal charges, further burdening Nigerians already grappling with economic difficulties, The Hope has learned.

Therefore, in a desperate bid to sustain their businesses, PoS operators have been forced to purchase cash from traders, supermarkets, and filling stations, paying between N1,000 and N2,000 to obtain N50,000 to N100,000 cash. Some operators have also become ’emergency’ commercial banks to meet the mounting cash demands of their customers.

This desperate scramble for cash has led to a steep increase in withdrawal fees, with PoS operators across Nigeria now charging between N100 and N200 for every N5,000 transaction.

This marks a significant rise in the cost of accessing cash through PoS operators, who were once a lifeline for many Nigerians unable to access funds through banks.

The financial strain on these operators, who are already operating on narrow profit margins, has been exacerbated, as they are forced to absorb the costs of sourcing cash, adding yet another layer of hardship for small business owners. More significantly, the increased charges are hitting the ordinary Nigerians hardest, especially those who rely on PoS services as a vital alternative to commercial banks, particularly in underserved areas.

These challenges have been driven by the Central Bank of Nigeria (CBN) policies, which were designed to regulate fintech platforms and PoS operations.

Some of the policies include the requirement for PoS operators to register with the Corporate Affairs Commission (CAC), setting strict guidelines for PoS operations, and imposing a N50 stamp duty fee on transactions exceeding N10,000.

Since December 1, 2024, these policies have been enforced across major fintech platforms like OPay, Moniepoint, and Kuda, but the ripple effect has been devastating for small business owners and ordinary Nigerians alike.

Ajikumbi Wasiu, a PoS operator, spoke with palpable frustration, explaining that the increased charges have taken a severe toll on his business.

“We can’t get to the bank to get money on time. They tell us there’s no money in the bank, so we have to source cash from petrol stations or supermarkets,” he said, his voice tinged with resignation.

Wasiu lamented the harsh reality of sourcing cash, travelling long distances for small amounts, and the growing challenge of meeting the needs of his customers.

“Customers have reduced drastically. People are engaging in criminality due to poverty,” he revealed, underscoring the widening gulf between the haves and the have-nots in a country struggling to survive.

Aisha Adelusi shared similar concerns, pointing out how the new charges have drastically impacted her business. “It’s painful. The charges have impacted my business negatively,” she said, noting that customer traffic has sharply declined.

Adelusi explained the added burden of sourcing cash through alternative means, which has only worsened her situation.

“I buy cash at a higher rate. For instance, I buy N50,000 for N1,000 and N100,000 for N1,500. This increases my expenses and reduces my profit,” she added, a sentiment that echoes the suffering of countless Nigerians trying to make ends meet.

Funmilayo Otunubi expressed deep frustration with the CBN’s policies, which she feels are unreasonably harsh on small business owners like herself.

“If you abandon your terminal for a while, they’ll call you and block your PoS. This is a big problem for us,” she said, reflecting the constant pressure faced by operators who feel increasingly powerless in the face of these regulations.

Despite the hardships, Esther, another PoS operator, has managed to adapt by passing the increased charges onto her customers. “I don’t buy cash like others do. I receive cash from those who bring it. I pass on the charges introduced by the CBN to my customers without explaining myself, and my customers remain loyal due to the difficulty of accessing cash from banks,” she said, offering a glimpse of how some have found ways to survive amid the turmoil.