Naira note scarcity: POS operators dominate market, device new strategy

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

Track News reports that with the situation, many people queue endlessly before bank Automated Teller Machines (ATMs), and even fight, even with no hope of getting cash.

Before the redesigning of N200, N500 and the N1,000 bank notes 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 This means that every amount above N10,000 withdrawn attracts 10 percent of the amount.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 attract discounts. For example, to withdraw 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 charge.

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

Track News correspondent who moved round Awka, the capital of Anambra State reports that no fixed charge abound for withdrawal of cash from the POS.

Customers simply agree to any amount charged as commission by the operators, depending on the availability of cash.

Though most POS operators in the city denied having cash, others who accepted having cash, charged 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,” a POS operator, Miss Chidera Mmasi told Track News

Meanwhile, at Eke Awka market, the biggest market in the capital city, POS operators charged N1,000 for every N10,000 withdrawn, a standard in the market.

Our correspondent, 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 transfers and when I want to buy goods, I will still use a huge amount to withdraw the money. Who is fooling who? 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 foodstuff.”