CBN’s N100,000 withdrawal limit sparks concern among POS operators
The Central Bank of Nigeria’s (CBN) recent directive imposing a N100,000 daily withdrawal limit for individuals has elicited strong reactions from Point-of-Sale (POS) operators nationwide.
While the policy aims to drive a cashless economy and combat illicit financial activities, many operators view it as a threat to their businesses, especially during the bustling Yuletide season.
POS operators, who play a pivotal role in advancing financial inclusion, particularly in rural and underserved areas, are grappling with the implications of the policy. For many, the new withdrawal limit hampers their ability to meet customer demands, which frequently exceed the stipulated threshold.
In Abuja, operators voiced their concerns about the policy’s impact on daily transactions. Blessing Aku, a POS attendant in Nyanya, noted that no customer had completed a transaction reaching the N100,000 limit since the directive took effect.
At Karu market, Mallam Gambo lamented that many of his customers, especially market traders, often require cash withdrawals exceeding N100,000 for their daily business needs. He expressed fears of a recurrence of the cash scarcity experienced during the naira redesign policy.
READ ALSO: Southeast Insecurity: Ojukwu Jnr calls for release of..
The directive has also raised fears of increased transaction charges. Grace, a POS agent in Mararaba, explained that processing multiple smaller transactions would drive up operational costs, potentially leading to higher service charges that could frustrate customers.
Beyond increased costs, the policy’s broader economic implications have operators worried about potential job losses. Samuel, a POS agent in Nasarawa State, stated that reduced patronage could force him to shut down his business, which has been his sole source of income for three years.
In rural areas with limited banking infrastructure, the directive could further marginalise cash-dependent communities. Operators like Yusuf Bala highlighted how customers in these regions rely heavily on POS services to access funds, emphasising that the policy might unintentionally deepen financial exclusion.
POS operators are calling on the CBN to review the policy, suggesting adjustments to the withdrawal limits or special provisions for their sector to ensure uninterrupted service delivery. While acknowledging the need for a cashless economy, operators argue that a more flexible approach is necessary to balance policy objectives with the realities on the ground.
