Why POS operators are increasing their service charges

Following the Central Bank of Nigeria’s recent cash swap policy and lack of new naira notes in circulation, many Point of Sale (POS) operators in Lagos have decided to cash out on residents.

Nairametrics gathered that POS operators now charge much more than usual for cash withdrawals and transfers, blaming the excess charge on the difficulties they face while getting cash.

Some of the POS outlets visited in Ojota, Abule-Egba and Ikeja axis were either not dispensing the new notes or charging extra cash for them.

More reasons for increased charges: Mrs Victoria Babatunde, a POS operator in Abule-Egba, was charging N500 for each N5000 notes dispensed whether old or new notes. She explained that banks are not dispensing enough new naira notes which makes it very difficult to access the banknotes.

Consequently, POS operators who manage to get their hands on the new banknotes increase their service charges to make up for the stress they go through to get the cash.

She also complained that apart from it being difficult to get new notes from the banks, it is becoming difficult for her to maintain her business because most times, she does not even have enough cash to dispense to customers.

Another POS operator in Ojota, Iya Tobi, complained bitterly about how the banks are dealing with them by not dispensing the new notes, saying she took a loan from traders since banks and ATMs were not ready to dispense money, adding that the amount charged included the money borrowed.

In case you missed it: President Muhammadu Buhari recently granted the Central Bank of Nigeria’s request to extend the deadline for exchanging old Naira notes for new ones. Now, instead of January 31, 2023, the new deadline is February 10, 2023. Following the Central Bank of Nigeria’s (CBN) recent cash swap policy and lack of new naira notes in circulation, many Point of Sale (POS) operators in Lagos have decided to cash out on residents.

Despite the extension, for reasons best known to them, several commercial banks have not been issuing both old and new naira notes at their ATMs.