Just a few hours to the tip of 2024, many Nigerians are actually on the mercy of Level of Gross sales (PoS) operators as most banks’ Automated Teller Machines (ATMs) throughout Lagos metropolis stay empty.
Contained in the banks, there isn’t a reprieve as many of the banks flip their clients again for lack of money, and in uncommon instances the place the purchasers are capable of get money, they’re restricted to N10,000 or N20,00 withdrawals.
That is occurring regardless of a current warning to the banks by the Central Bank of Nigeria (CBN) that any bank discovered not dishing out money by way of ATMS can be sanctioned.
“It’s been irritating. I’ve gone to a few totally different banks at the moment, and none of them has money to present. How are we purported to have a good time the season like this,” lamented Vivid Joseph, a Lagos resident.
PoS Operators increase expenses
The scenario has left many Nigerians who want money for the tip of the yr purchases on the mercy of PoS operators, who are actually making the most of the shortage to impose exorbitant expenses on money withdrawals.
- In some components of Lagos, a typical PoS transaction now attracts charges as excessive as N500 for a withdrawal of N5,000—a pointy distinction to the N100 or N200 that was the norm just a few months in the past.
- For bigger quantities, the fees are even steeper, leaving clients with no alternative however to pay the inflated charges.
“I needed to withdraw N10,000 yesterday, and the PoS operator charged me N1,000. It’s unfair, however what can I do? I wanted the money,” mentioned Mr. Benjamin Idowu, a civil servant residing within the Ogba space of Lagos.
For a lot of Nigerians, who depend on money for every day transactions like transportation, feeding, and small purchases, the scenario has been notably dire.
What’s inflicting the shortage?
Whereas no official rationalization has been given for the scarcity, stakeholders speculate that it might be linked to a mixture of things, together with money hoarding by people getting ready for festive spending, or a deliberate plan by the CBN to power many Nigerians to embrace digital fee with a view to make extra transactions traceable and taxable.
- An official in one of many tier-2 banks, who spoke with Nairametrics below the situation of anonymity as a result of he was not approved to talk, blamed the money shortage on the CBN.
- In response to him, the CBN has not been releasing money to banks like earlier than and the amount of money that clients are depositing has considerably decreased.
“In a scenario the place you aren’t getting sufficient money from the CBN and clients are usually not bringing money to deposit, how can we get money to pay our clients? Banks don’t print cash,” he mentioned.
Suggesting that it may additionally be a part of the plans of the CBN to restrict money in circulation he queried, “Why has the CBN not penalized any bank for not dishing out money as of now?”
How PoS operators get money
Whereas fingers are being pointed at an alleged unholy alliance between PoS operators and banks as the reason for the shortage, a number of the operators have debunked the insinuation saying there was no such deal.
In response to Mr. Olawale Michael, who has a series of PoS outlets in Ikeja, the operators have additionally been unable to withdraw money from the banks in current instances.
“There isn’t any reality within the allegations that PoS operators are colluding with banks to trigger money shortage. Actually, within the final two months, I’ve not withdrawn from the bank and my companies are offering money for folks every single day.”
Requested how he will get money, he mentioned: “For a while now, we have now been working with market ladies and store homeowners, who obtain money every day from their gross sales, we accumulate money from them and switch the cash to their account.”
“It’s a symbiotic relationship as a result of we’re additionally saving them the stress of going to the bank to go and deposit money,” he added.
One other PoS operator, Mrs Nkechi, mentioned she has not been getting money from bank however from a fueling stating close by, including that she pays additional to the attendant on high of each money collected.
“Persons are complaining that PoS operators are rising their expenses, we’re additionally paying to get the money. If I’m capable of withdraw from the bank, then the fees can be regular, however within the absence of that I’ve to supply for the money elsewhere and I additionally pay to get it,” she mentioned.
What it is best to know
In September this yr, the CBN introduced that it will sanction banks failing to dispense money via their ATMs, as a part of efforts to make sure enough money in circulation.
- CBN Governor, Yemi Cardoso, mentioned this throughout a press briefing on the finish of the 297th Financial Coverage Committee (MPC) assembly in Abuja on Tuesday.
- The governor emphasised that every one deposit cash banks should guarantee there’s at all times sufficient money obtainable for withdrawals.
- The CBN governor mentioned that the apex bank has arrange a monitoring system to make sure compliance, and any bank not adhering to this directive will face penalties.
- Cardoso reiterated that the CBN’s monitoring and spot-checking system would maintain observe of banks’ compliance, and people failing to satisfy the requirement can be sanctioned.
- Nonetheless, as of the time of submitting this report, there has not been any report of any bank sanctioned for not dishing out money by way of ATMs, even because the machines stay visibly empty throughout banks.
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