Nigerians grapple with high PoS charges as banks’ ATMs remain empty 

A few hours to the end of 2024, many Nigerians are now at the mercy of Point of Sales (PoS) operators as most banks’ Automated Teller Machines (ATMs) across Lagos metropolis remain empty.

Inside the banks, there is no reprieve as most of the banks turn their customers back for lack of cash, and in rare cases where the customers are able to get cash, they are limited to N10,000 or N20,00 withdrawals.

This is happening despite a recent warning to the banks by the Central Bank of Nigeria (CBN) that any bank found not dispensing cash via ATMS would be sanctioned.

“It’s been frustrating. I’ve gone to three different banks today, and none of them has cash to give. How are we supposed to celebrate the season like this,” lamented Bright Joseph, a Lagos resident. 

The situation has left many Nigerians who need cash for the end of the year purchases at the mercy of PoS operators, who are now taking advantage of the scarcity to impose exorbitant charges on cash withdrawals.

“I had to withdraw N10,000 yesterday, and the PoS operator charged me N1,000. It’s unfair, but what can I do? I needed the cash,” said Mr. Benjamin Idowu, a civil servant residing in the Ogba area of Lagos.  

For many Nigerians, who rely on cash for daily transactions like transportation, feeding, and small purchases, the situation has been particularly dire.

While no official explanation has been given for the shortage, stakeholders speculate that it could be linked to a combination of factors, including cash hoarding by individuals preparing for festive spending, or a deliberate plan by the CBN to force many Nigerians to embrace digital payment in order to make more transactions traceable and taxable.

“In a situation where you are not getting enough cash from the CBN and customers are not bringing cash to deposit, how do we get cash to pay our customers? Banks don’t print money,” he said. 

Suggesting that it might also be part of the plans of the CBN to limit cash in circulation he queried, “Why has the CBN not penalized any bank for not dispensing cash as of now?”

While fingers are being pointed at an alleged unholy alliance between PoS operators and banks as the cause of the scarcity, some of the operators have debunked the insinuation saying there was no such deal.

According to Mr. Olawale Michael, who has a chain of PoS shops in Ikeja, the operators have also been unable to withdraw cash from the banks in recent times.

“There is no truth in the allegations that PoS operators are colluding with banks to cause cash scarcity. In fact, in the last two months, I have not withdrawn from the bank and my businesses are providing cash for people every day.” 

Asked how he gets cash, he said: “For some time now, we have been working with market women and shop owners, who receive cash daily from their sales, we collect cash from them and transfer the money to their account.” 

“It is a symbiotic relationship because we are also saving them the stress of going to the bank to go and deposit cash,” he added. 

Another PoS operator, Mrs Nkechi, said she has not been getting cash from bank but from a fueling stating nearby, adding that she pays extra to the attendant on top of every cash collected.

“People are complaining that PoS operators are increasing their charges, we are also paying to get the cash. If I’m able to withdraw from the bank, then the charges will be normal, but in the absence of that I have to source for the cash elsewhere and I also pay to get it,” she said. 

In September this year, the CBN announced that it would sanction banks failing to dispense cash through their ATMs, as part of efforts to ensure sufficient cash in circulation.