New Naira Notes:Why POS Operators Hike Charges 700% in Lagos, Abuja

Nigerian citizens are facing increasing challenges as a result of the scarcity of the new Naira notes as Point Of Service (POS) operators now charge over 700% on each successful cash transaction.

The POS operators in the Federal Capital Territory (FCT), Abuja are said to be charging their customers as much N700 for N5000 successful cash transaction.

The charges now range from N100 on N1,000 withdrawal; N300 on N2,000; N700 on N5,000 and N1,500 on N10,000 withdrawal instead of the normal N100 and N200 charges on N5,000 and N10,000 customers paid earlier this week.

A PoS operator who do not want his name to be mentioned said he bought the redesigned Naira notes very costly in the black market.

Said he: “Oga, I bought the cash I am giving to customers. I have to recover the huge money I paid to be able to buy the money. In fact, I suffered long hours yesterday (Friday) to be able to source for the new Naira notes to satisfy my customers”.

The story was the same at Area 3, Garki in the Abuja Municipal Area Council (AMAC) as POS operators are charging even higher commission for cash withdrawals with resident, Alhaji Ibrahim Isa Aliyu confirming he paid N2,500 to the POS operator to withdraw N20,000.

According to him, he has an urgent need for cash of N20,000 this weekend to pay for groceries and other petty household items, pointing out that his wife has need for cash to buy food items in the market.

If residents of FCT are groaning in the heavy burden of high charges by POS operators and scarcity of the redesigned Naira notes, reports from the rural areas across Nigeria are much worse as cash withdrawals have become a big challenge in most places including in Okohia Ancient Kingdom in Isiala Mbano Local Government Area (LGA) of Imo state.

With insecurity reaching an alarm stage in Imo, many rural folks rely on the POS operators to cash money to transact their daily businesses for fear of being attacked in the commercial banks in the state but many of the outlets have closed shop for lack of cash to pay their customers.

Most POS operators at the ever-busy Anara bus terminal in Osuh Mbano, along Owerri-Okigwe- Enugu Road, have closed for lack of cash to transact their business.

Meanwhile, the Central Bank of Nigeria (CBN) Governor Godwin Emefiele has said that the apex bank is not considering deadline extension for the phasing out of the old Naira notes.

Emefiele handed down the warning in a briefing in Lagos, on Friday, pointing out that the bank is not considering an extension of the deadline after the 10-day grace recently approved by the President.

The CBN Governor , appealed to Nigerians to exercise patiene noting that the gains of the policy outweigh the initial challenges.

“I want to say unfortunately again, this time, we will not be looking at extension of deadline because we are the central bank and the deposit money banks are doing everything to address the challenges,” he said.

He also said the redesigned Naira policy was not targeted at anyone, re-emphasising that the policy is aimed at economic benefits even as he also appealed to Nigerians not to allow themselves to be used to truncate the policy.

“We are doing our work. We are bankers. Those holding protest should not allow themselves to be used,” he said.

He begged Nigerians to show understanding and accept to join queue at the banks.