Point of Sales (PoS) agents could raise their withdrawal fees following a Central Bank of Nigeria directive limiting cash disbursement to ₦100,000 per cost or ₦1.2 million per PoS agent daily.
On Tuesday, the apex bank released a circular to all banks with this new directive in line with the apex bank’s ongoing efforts to advance a cash-less economy.
According to the circular, the interventions aim to address identified challenges, combat fraud and establish uniform operational standards across the industry.
“In view of the above, All principals of agents are to comply with the following directives immediately:
i. Issuers shall set a cash withdrawal limit (cash-out) per customer (regardless of channel) to ₦500,000.00 per week,” the circular read.
Many PoS agents believe this latest directive could cripple the impact of their service which has grown to nearly 2 million across the country, according to TechCabal. While the jury is out on the usefulness of the agent banking model, these operators have driven a huge part of Nigeria’s financial inclusion which is placed at 64%.
Besides, the agent banking model was crucial in the midst of a naira redesign and cash scarcity that made things difficult before the 2023 elections.
If the Central Bank is to regulate the PoS agents’ operations, it must now be willing to provide cash in bulk amounts to banking halls and Automated Teller Machines (ATMs), especially during the Yuletide, which is marked by huge cash demand.
