Shettima urges banks to end PoS operators’ exploitation of Nigerians

• Vice-President Kashim Shettima urges banks to address exploitation by PoS operators charging arbitrary fees for cash withdrawals
• Shettima emphasises that the unavailability of cash is hindering financial inclusion efforts in Nigeria
• The Vice-President calls for innovative financing initiatives to empower Micro, Small, and Medium Enterprises (MSMEs)

Vice-President Kashim Shettima has called on Nigerian Deposit Money Banks (DMBs) to address the exploitation of Nigerians by Point of Sale (PoS) operators, who impose arbitrary charges for cash withdrawals.

Speaking on December 6 at the 2024 Bankers’ Committee Retreat in Abuja, Shettima, represented by Tope Fasua, his Special Adviser on Economic Affairs, highlighted the negative impact of such practices on financial inclusion efforts. 

He emphasised that these unwholesome activities hinder the availability of cash and further marginalise the banking public.

“We appeal strongly to the committee to urgently address issues in the sector that impede financial and economic inclusion.

“Nigerians are burdened by high and arbitrary charges from rogue agents, which we trust you can resolve with concerted efforts,” Shettima stated.

He urged banks to ensure the seamless availability of naira notes, noting that the scarcity of cash continues to frustrate citizens’ ability to access funds when most needed.

Shettima also called for innovative financing solutions for Micro, Small, and Medium Enterprises (MSMEs) and urged banks to foster a consumer credit culture. These measures, he explained, are crucial for economic growth and expanding financial inclusion.

Shettima praises Nigerian banks’ regional leadership

Highlighting the dominance of Nigerian banks in West Africa and beyond, Shettima praised their success in establishing branches in countries like France. 

Citing Professor Ricardo Haussman’s concept of capability development, he encouraged banks to consolidate their global leadership using technology and their comparative advantages in banking.

“Banking is a sector where Nigeria has excelled. Leveraging this success globally is a valid strategy to maintain dominance,” Shettima said.

The vice president urged banks to stay at the forefront of risk management, particularly as the financial industry evolves with fintechs, neobanks, and agency banks driving innovation. He emphasised the importance of developing robust responses to these changes to sustain growth and inclusion.

Central Bank’s intervention

The Central Bank of Nigeria (CBN) recently issued directives to address cash scarcity. It mandated banks to ensure efficient cash disbursement through over-the-counter (OTC) services and ATMs. 

In addition, the CBN introduced hotlines and email channels for the public to report cash access challenges, reinforcing its commitment to ensuring adequate currency availability.

The CBN aims to alleviate Nigerians’ financial burden by intensifying oversight, enforcing compliance, and promoting accessibility and fairness in the banking sector.

Police warn PoS operators to avoid transactions over N500,000

Meanwhile, TheRadar earlier reported that police warned point of sale (PoS) operators to avoid transactions exceeding ₦500,000 after the Delta State Police Command uncovered how a female PoS agent handled a ransom payment for kidnappers.

Police spokesperson Superintendent of Police (SP) Bright Edafe issued the warning on Thursday, October 17, advising POS operators to avoid high-value transactions, particularly those related to criminal activities like ransom payments.