The Association of Mobile Money and Bank agents (AMMBAN) has disclosed that there are no plans to increase the service charges to customers of POS operators despite CBN’s new policy to review cash withdrawal limits for Automated Teller Machines, POS operators and over-counter-withdrawals.
Victor Olojo, the president of AMMBAN, made this disclosure in an exclusive interview with PUNCH. He also explained that the association encourages members to register as businesses to increase their limits for withdrawal.
In December 2022, the Central Bank of Nigeria (CBN) announced a new policy that limits weekly cash withdrawals by individuals and corporate bodies to ₦100,000 and ₦500,000, respectively, in a circular to Deposit Money Banks (DMBs) and financial institutions to take effect nationwide on January 9, 2023.
Following displeasure from Nigerians, the apex bank increased the maximum weekly limit for cash withdrawals across all channels by individuals and corporate organisations to N500,000 and N5 million, respectively, two weeks after the initial announcement.
Read more: Nigerians lament the new CBN withdrawal limit
What is the AMMBAN President saying?
Victor Olojo disclosed that the CBN is aware of the stumbling blocks that this policy would put in the path of POS operators, and the apex bank’s awareness is a silver lining that solutions are being proposed as regards the policy.
He also explained that POS operators had been informed about this new policy, and they have come to terms with registering their businesses as corporate entities rather than increasing services charges.
Victor Olojo highlighted a logical explanation of why this new policy by the CBN will not be favourable because the customers will likely be the victims of the new policy.
Currently, we are limited to the threshold of N500,000 but in case the need is more than that, then it becomes an issue and what that implies is the agent naturally will transfer the cost to the customer and Nigerians will be the ones to pay for that extra five percent that banks charge.Victor Olojo, National president of Mobile Money Banks Agents in Nigeria (AMMBAN)
Impact of CBN’S new policy on POS operators
It is no news that the Nigeria of today is not what was envisioned by the heroes past. Nigerians anticipated better finance, economy, workforce, growth, and productivity. But, it is not the case that all these things have not come into the picture yet.
Businesses and finance go hand in hand, and the current state of businesses in Nigeria is in disarray. The recent decision of the Central Bank of Nigeria’s (CBN) decision to reevaluate cash withdrawal limits for Automated Teller Machines and over-the-counter withdrawals is one that hurt individuals and businesses.
Read Also: Investigation: Are bank staff colluding with PoS operators to rip off Nigerians?
While several Nigerians have become business owners thanks to the POS operations,, the new CBN cash policy dictates that withdrawal over the limit will attract processing fees of five per cent for individuals and ten per cent for corporate bodies, effective 9th January 2023.
There is usually a charge of N100 for withdrawals of five thousand and below and an extra N100 once the fees withdrawn from a POS operator exceed another N5ooo naira. This means that withdrawals between N6000 and N10000 will attract a 200 naira charge, N11000-N15000 attract a 300 naira charge, etc.
Not only will this new policy affect POS agents but also the service users. This is because service users will be charged extra fees on their transactions if POS agents do not urgently address this by registering their businesses to curb any form of extortion over the service users.
Victor Olojo’s concluded his interview by admitting that Nigerians are adapting to the new policy. He also encouraged his members who were yet to register their businesses to do so in order to access more funds rather than making the service users bear the consequences of their actions.
Read Also: e-Transactions recover to hit record N527bn in May as the value of POS payments drop
Get the best of Africa’s daily tech to your inbox – first thing every morning.
Join the community now!