BusinessMoneyNewsNigeriaNaira scarcity: POS operators in heavy profits, device means to source cash

Avatar PilotnewsFebruary 7, 2023

As both the new and old naira notes remain scarce around the country, operators of Point of Sale, popularly known as POS have become the new lords in Anambra State.

This is because, while many people queue endlessly before bank Automated Teller Machines (ATM), and even fight themselves, even with no hope of getting cash, POS operators disburse cash to their customers effortlessly, so long as they agree to their charges.

Before the redesigning of N200, N500, and the N1,000 banknotes by the Central Bank of Nigeria (CBN), POS operators had a standard charge for the disbursement of various amounts of cash to customers.

The charge for every N10,000 disbursed to customers was usually N100, and as a customer moved to higher sums, the charges grew in the same sequence. This means that every amount above N10,000 withdrawn attracts 10 percent of the amount. In most cases, customers who want to withdraw or deposit huge amounts always attracted discounts. For example, withdrawing or pay in N100,000 can attract a discount depending on the POS operator, and this may come low to just N700 or N800 as a charge.

Times have however changed, and the previous regulation and leniency, which users of the POS enjoyed have been demolished. This is because there is no longer any standard charge for using POS, as what mattered more is the availability of cash.

The West African Pilot News Correspondents who moved around Awka, the capital of Anambra State report that no fixed charge abounds for the withdrawal of cash from the POS. Customers simply agree to any amount charged as a commission by the operators, depending on the availability of cash.

Though most POS operators who visited the city denied they did not have cash, some others accepted having cash cashed as much as N4,000 for every N10,000 demanded.

“This N10,000 you want to collect is my last money. I’m just accepting to give it to you because you need cash. I need cash myself, but I’m hoping that someone my oga made arrangements with, will give us cash tomorrow,” a POS operator, Miss Chidera Mmasi told the West African Pilot News

Meanwhile, at Eke Awka market, the biggest market in the capital city, POS operators charged N1,000 for every N10,000 withdrawn, as a standard charge in the market.

West African Pilot News who visited the market observed that there is a surge in every POS operator’s stand in the market as many traders have stopped accepting transfers.

A provision dealer, whose name was not ascertained said: “What is the use of accepting the transfer, when I want to buy goods, I will still use a huge amount to withdraw the money? Who is fooling whom? If I do it, the profit I gained from the goods I sold will be lost. So, let the customers be the ones to look for the cash, get it and use it to buy from us.”

A food vendor, Miss Ifunanya Eze said: “I sell a plate of food for N1,000. I accept transfers, but if you must pay through transfer, you will pay N1,200 for a plate because I have to use N200 as the service charge to withdraw the money when I want to buy.”

A civil servant, Mr. Peter Ubaka who spoke to us decried the lack of coordination in the charges demanded by POS operators, saying that they were ripping Nigerians off, simply because everyone needs cash.

“Today, right before me, a POS operator, who was charging N4,000 for every N10,000, collected the same N4,000 to give a guy N6,000. The guy said he needed the money, and the POS operator had exhausted her cash. She had only N6,000, and since there were other people who wanted to take N5,000, and N3,000, and the guy wanted N10,000, but since the POS girl didn’t have up to that, she insisted on taking N4,000 charges for N6,000.

“I was so mad at the girl. This is exploitative. How did roadside girls whom we used to dash free money after making transactions, suddenly become kings, such that every morning, people cluster in their stands to wait for them, and even call them to ask if they are coming to work, and if they had cash? I can’t understand. This should be checked,” he fumed.

Meanwhile, a check by the West African Pilot News showed that the cash being disbursed by POS operators is also not easy to get, as many of them go through unconventional means to get the money. Many of the POS operators according to investigation get money from various sources, just to service their customers and also remain in business.

“We go to banks and wait for people who are coming to the bank to deposit money. We intercept them and make deals, and then transfer to them, and then collect their cash. There are people who still do businesses that are cash based,” a POS operator explained.

Checks showed too that some of the POS operators also make arrangements with fuel stations, where they meet them after a day’s sales, to pick up their cash, instead of allowing them to take them to the bank.

The POS agent explained that: “That is how I have been getting cash to give to my girls to operate. But many people have joined that route, and it is now difficult to find cash. Banks won’t give you, if you go to ATM, you will fight and fight, only to get N10,000 or N20,000. It is hard for everybody. We too, are just trying to survive,” he said.

President Muhammadu Buhari has however promised to look into the new naira notes policy of the CBN, to avert the sufferings of Nigerians.

Nigerian governors have also sworn to weigh in, to avert the sufferings experienced by Nigerians.

Meanwhile, as the February 10 deadline for the use of the old notes draws near, there may be a renewed hardship in the country, as Nigerians may again start rejecting the old notes as it happened last week before the deadline was extended. This is if there is no further extension of the deadline by the CBN.

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