*CBN watches helplessly as Nigerians resort to buying Nigerian currency on the streets
*Frustrated Nigerians say 80% of banks, ATM not working leading to double charges
*Victims lament “bank networks useless” which worsen month ends and weekends
*Allege that CBN directors, commercial bank managers’ collaboration capable of undermining the economy
By Onu Okorie
Nigerians are beginning to be worried about frauds being perpetuated by some banks in collaboration with owners of Point-Of-Sale (PoS) operators in the country and wonder why the Central Bank of Nigeria (CBN) would sit by and watch helplessly and “do nothing.”
Although PoS was introduced in the payment system as part of the efforts by CBN to ensure seamless transaction and encourage cashless economy, our investigations have shown that commercial banks and some directors at CBN now collude with PoS owners to defraud unsuspecting members of the public.
For instance, it was gathered that some banks deliberately put the Automated Teller Machine (ATM) out of service to force customers to use the PoS with exorbitant charges thereby reaping off customers.
“If you have noticed, most ATM machines attached to the banks are always temporarily out of service. This situation is worse during the weekends, and month ends. Pray you don’t have any financial emergency because your banks will fail you.
“My question is, what are the banks for right now, what are they doing, and who owns the PoS dotted all over the city?
“Every bank in Nigeria has ATM machines within the premises; the rule before now is that from zero to 100,000 Naira transactions, customers should use the ATM within the banks premises to avoid crowds in the banking halls.
“But for some time now, bank owners have decided that the ATMs do not work; they probably work sceletally during banking hours, but the moment it is 10 minutes to 4pm, most of them are out of service.
“However, the failure of the ATM makes for most of the PoS operators who are next to the banks to take advantage to exploit bank customers.
This newspaper was told that Nigerians have become frustrated with the situation and that 80% of the banks and ATMs do not render the services they are supposed to render to members of the public, and regretted that such also lead to double charges.
Some other persons who spoke to our correspondents said that networks become “useless” especially during month ends and weekends. This newspaper was also told that some directors of CBN and commercial banks collaborate with PoS operators in the malpractices which no doubt has been harming the country’s economy.
Other fraudulent activities of the PoS owners include: unreasonable charges by the PoS owners particularly in remote areas where customers are left at their mercy. In some cases transaction charges go for 5 – 10 % depending on the place and the operator.
Apart from that, further investigation indicates that even shop owners are beginning to learn the same thing, ‘their own PoS you are supposed to pay exactly the amount of what you bought does not work, but the PoS outside and very close to the shop where you will pay with charges works perfectly.’
In recent times, eateries, supermarkets, malls and other businesses across the country have had to charge their customers an additional N50 on every PoS transaction. The businesses said they are complying with the CBN directive on cashless transactions.
Experts have expressed worry over the new development, saying it could slow down Nigeria’s drive to deepen financial inclusion and encourage a cashless economy.
This fraudulent activity has persisted despite the fact that the CBN has warned that nobody should pay extra on goods and services when paying through PoS. The CBN official circular said, “the N50 stamp duty is a fee regulated by an act that directs merchants to pay all necessary taxes as regulated by government agencies.”
Now, “The question is, why do Nigerians buy Naira in Nigeria? Because that is exactly what it amounts to, you buy Naira at 5% or 10% in Nigeria based on the location. So that if you are in some locations you pay 10% but if you are in some other places, you pay 5%.” Nigerians can’t be seen as buying Naira in Nigeria, it’s wrong by every standard.
Other questions begging for answers include who owns those PoS, because after you paid to withdraw money from the PoS, your banks will still charge you for the same transaction, that means the citizens in Nigeria are being charged multiple times to withdraw the same amount of money.
“Who in the banks ensures that Nigeria buys naira in Nigeria, regulatory bodies that work for you to do that is the real abuse of Naira,” he said.
He also said that all the banks need to be called to order, Nigerians can’t be buying naira in Nigeria. Also PoS operation needs to be regulated and whoever ensures that the ATM machines don’t work for seamless transactions by the customers need to be thrown out of the Banking system.
It would be recalled that the Central Bank of Nigeria CBN has warned Deposit Money Banks DMBs and Point-Of-Sale PoS operators against deliberate withholding the availability of cash and disrupting the seamless circulation of the Naira.
The CBN Acting Director Corporate Communications Mrs Hakama Sidi Ali, swaid that the apex bank frowns at such inappropriate actions by certain individuals and is investigating the reported cases capable of undermining the smooth running of the economy.
“The CBN has, therefore, warned banks and PoS operators to desist from such activities as relevant sanctions shall be meted out to those found wanting.
“Meanwhile, members of the public are encouraged to use alternative payment channels as well as report any case of unauthorized activities, such as capping and hoarding, by banks or PoS agents to the CBN branch in their locations”
According to the data from the NIBSS, Nigeria recorded cheque transactions in 2021 valued at N3.22 trillion, a marginal decline compared to N3.27trn recorded in the previous year.
Compared to five years ago, it dropped by 40.2 per cent compared to N5.38trn recorded in 2017, further indicating a switch from conventional methods to digital means, and an indication that Nigerians will sustain the usage of the PoS.
According to the NIBSS, the number of registered PoS terminals in the country rose to 976,898 in 2021, just a little under 1million, compared to 523,488 registered at the same period in 2020.
The increase in PoS transactions across the country points to the fact that Nigerians are gradually embracing digital penetration in the country. Also, PoS outlets have become a major form of employment for Nigerian youths, helping to bridge the unemployment gap in the country, which currently stands at 33.3 per cent, according to recent figures from the NBS.
