Central Bank of Nigeria to Intervene as Point of Sale Operators Implement Rate Hike

The Central Bank of Nigeria (CBN) has expressed its intention to intervene in resolving the ongoing issues surrounding the new charges introduced by Point of Sale (PoS) operators in the country.

Following the recent increases in PoS charges in Lagos, Ogun, and Edo states, PoS agents have been engaging with stakeholders nationwide to discuss changes in transaction charges for their services. Oluwasegun Elegbede, the National Public Relations Officer of the Association of Mobile Money and Bank Agents in Nigeria, confirmed this development.

Elegbede explained that the price adjustments by the Lagos chapter of the association were aimed at aligning with the current economic realities in the country. He emphasized the need for PoS agents to sustain their businesses amidst rising operational costs, stating that the funding, operational expenses, and staff salaries are borne by the agents themselves.

While Elegbede acknowledged that each state would adopt rates based on its peculiarities, he revealed that some states have already implemented the new rates, including Ogun and Edo, albeit without much attention. He further noted that other states were also in the process of setting up committees and engaging stakeholders to ensure a well-accepted implementation.

Despite the move by the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN), it is in defiance of the recent action by the Central Bank of Nigeria, which provided emergency telephone numbers for Nigerians to report PoS agents charging above N200 for withdrawals up to N10,000.

In response to the situation, the CBN’s Director of Corporate Communications, Isa AbdulMumin, assured that the CBN was aware of the developments and working towards resolving the issue.

As of the end of March 2023, there were 1.8 million deployed PoS machines in Nigeria, according to the Nigeria Inter-Bank Settlement System. With the transaction value reaching a record high of N1.15 trillion during the same period, more Nigerians have come to rely on PoS services for their financial transactions.