The ongoing cash scarcity in Nigeria has pushed Point-of-Sale (PoS) operators to seek alternative sources for obtaining cash, turning to market sellers and petrol station attendants. This shift comes as commercial banks impose a withdrawal limit of N5,000, severely restricting access to cash.
PoS Operators Buy Cash at a Premium
Investigations by Daily Trust reveal that PoS operators pay N1,000 to N2,000 to buy cash amounts ranging from N100,000 to N200,000 from market sellers or filling stations. This additional cost has led to a 100% increase in service charges for customers.
For example, the charge for withdrawing N5,000 has risen from N100 to N200, frustrating both operators and customers.
Operators Express Challenges
Many PoS operators have shared their struggles with the unavailability of cash from banks and ATMs, noting how it disrupts economic activities.
Beauty Odion, a PoS operator, lamented the challenges she faces:
“Now, because of the scarcity of cash, you leave home very early in the morning looking for cash. By 11 am or 12 pm, you are still searching. Sometimes, I go to about four to five banks and their ATMs, but it’s a gamble whether you’ll find cash.”
Odion also highlighted the drop in customer patronage due to increased charges. She attributed the hike to the scarcity of cash and the N50 Electronic Money Transfer Levy (EMTL) deducted by Fintech companies.
“Yes, we have increased our charges, but customers refuse to pay. Our banks deduct N50, and cash is hard to come by. Yet, customers complain about the new rates. It’s affecting our profit margins significantly,” she added.
Alternative Cash Sources
Okechukwu Christopher, another PoS operator, shared his strategy of relying on a neighbor who sells staple foods to source cash. Similarly, Olumide Sheriff explained how he now depends on market sellers for cash since daily bank withdrawals are insufficient for his business operations.
“For two weeks, it has been difficult to get cash. The highest banks give us is N5,000, so we turn to market sellers or petrol stations. The market sellers are often willing to part with cash to restock their goods,” Sheriff noted.
Implications
The cash scarcity continues to strain businesses, disrupt financial transactions, and deepen economic hardship for both operators and their customers. With increasing charges and limited access to cash, PoS operators face declining patronage, raising concerns about the long-term viability of their businesses amidst these challenges.
