Point-of-Sale (PoS) operators in Nigeria have notably raised their withdrawal fees, now charging between ₦300 and ₦200 for transactions of ₦5,000. This represents a substantial increase from the earlier limit of ₦100, leading to extensive public discussion about the financial burden on the populace.
The increase comes after the Federal Inland Revenue Service (FIRS) imposed a ₦50 Electronic Money Transfer Levy (EMTL) on fintech companies, a measure that took effect on December 1. Leading platforms such as OPay, Moniepoint, and Kuda have incorporated the levy into their operations to adhere to regulatory standards.
Sarafadeen Fasasi, the National President of the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN), clarified the reasons for the rise in fees.
Fasasi stated that the introduction of the ₦50 levy has compelled PoS agents to modify their transaction fees in order to cover the expenses.
He elaborated that although the levy is not new, it has now been broadened to encompass fintech firms, which dominate 70% of the PoS market.
“Previously, only bank-affiliated agents were subject to the levy. However, the regulator has now required it to be applied to all agents, including those associated with fintech companies such as Moniepoint, OPay, and Paga, he noted.
In Abuja, Africa Health Report (AHR) on Thursday, interviewed Mr. Udoka, a PoS operator in Dutse Alhaji, under Bwari Area Council, who confirmed the rise in transaction charges.
“We’ve had to increase PoS charges due to the ₦50 levy and the ongoing cash shortages. Speaking for myself, I charge a standard rate, but other PoS operators may have higher rates, so I can’t speak for everyone. For example, a withdrawal of ₦20,000, which previously cost ₦500, now costs ₦1,500. Withdrawals of ₦10,000 that used to cost ₦200 are now ₦700, and ₦5,000 withdrawals that used to cost ₦100 are now ₦300. It’s not entirely our fault—these changes are driven by the levy and the cash scarcity in the country,” he explained.
The increase has drawn criticism from consumers, who argue that it is adding to their financial woes. Mr. David, a customer interviewed by AHR, expressed his frustration.
“Seriously, the increase in PoS charges is alarming and getting crazy by the day. It’s not funny anymore. You go to the bank, and there’s not enough cash. You come to PoS operators, and they frustrate you with withdrawal charges.
“Imagine wanting to withdraw ₦30,000, and they tell me the charge is ₦3,000. ₦10,000 withdrawals that used to cost ₦500 are now ₦1,000. It’s outrageous,” he lamented.
The situation has raised concerns about the burden placed on ordinary Nigerians, particularly during a festive season already marked by economic challenges.
