NAIRAMETRICS
The Central Bank of Nigeria (CBN) has recently implemented a directive imposing a daily withdrawal limit of N100,000 for individuals, a policy aimed at fostering a cashless economy and curbing illicit financial activities.
However, the directive has sparked a wave of reactions from Point-of-Sale (POS) operators across the country, many of whom see the policy as a potential threat to their businesses and livelihoods especially during the Yuletide season.
POS operators, who serve as an essential bridge in Nigeria’s financial inclusion efforts, particularly in rural and underserved areas, have expressed concerns about the feasibility and implications of the directive.
For many operators, the new withdrawal limit restricts their ability to meet customers’ cash demands, which often exceed the stipulated threshold.
Nairametrics spoke to several POS merchants in Abuja on Thursday.
Our reporter also visited Karu market; Mallam Gambo, a POS operator around the area, lamented the challenges the directive poses to his business. “Many of my customers come to withdraw amounts above N100,000, especially market traders who need cash for their daily transactions. This [referring to the new CBN directive] is making it hard for me to satisfy their needs, I just hope things will not happen like the Naira scarcity of last year.”, he said.
Operators also fear that the withdrawal limit could lead to increased transaction charges as they seek to offset potential losses. “If customers can only withdraw smaller amounts, we’ll have to process more transactions, which increases our operational costs,” said Grace, a POS agent in the Mararaba area. “This might force me to raise service charges, and customers won’t be happy about it.”
The directive has raised concerns about the broader economic impact on the POS sector, which employs thousands of Nigerians.
Many operators believe that the policy could result in reduced patronage, forcing some to shut down their businesses…
