POS banking agents are grappling with new challenges following the Central Bank of Nigeria’s (CBN) recent cash disbursement directive. The CBN has imposed a daily limit of ₦1.2 million per agent and restricted individual withdrawals to ₦100,000. This policy, announced on Tuesday, aims to regulate POS banking but has stirred concerns among agents and customers alike.
Agents Raise Withdrawal Fees
The new rules have already triggered reactions. POS agents, who play a vital role in Nigeria’s financial inclusion, are adjusting their operations to cope. For example, Semiu Ajayi, a POS agent in Gbagada, Lagos, says, “I’ll just increase my withdrawal charges. It used to be ₦4,000 for ₦100,000, but now I’ll charge ₦6,000 or more.”
Agents across Lagos and beyond are adopting similar measures. Many argue the new policy will reduce their business margins while increasing costs for customers.
Why POS Banking Agents Are Essential
Since the cash scarcity of 2023, POS agents have become indispensable intermediaries for cash transactions. Nigerians often rely on these agents when ATMs or banks fail to provide adequate cash services. Despite their importance, critics argue that agents charge high fees and encourage cash reliance, undermining the CBN’s push for a cashless economy.
The CBN’s Intentions and Agent Concerns
According to the CBN, the withdrawal limits will help combat fraud, regulate the agency banking sector, and promote a cashless economy. In a statement, the CBN explained, “The measures aim to ensure compliance and uniform operational standards.”
However, POS agents like Shade Raheem in Ikeja worry the changes will push customers back to traditional banks, reducing their earnings.
Adaptation Strategies by POS Agents
Despite the challenges, POS banking agents are exploring solutions to adapt. Tade Oluwanisola, an agent in Ikorodu, shared, “We plan to acquire more terminals to spread the demand. Not every customer will hit their daily limit, so we’ll balance the transactions across terminals.”
The Road Ahead for POS Banking Agents
While the CBN pushes for stricter oversight—requiring agents to register with the Corporate Affairs Commission (CAC) by September 2024—agents are finding ways to navigate the policies. The banking regulator warned of strict penalties for non-compliance, including fines and administrative sanctions.
POS banking agents are at the heart of Nigeria’s financial ecosystem. As they adapt to these new regulations, the future of agency banking will depend on how effectively the CBN balances regulation with the need for financial accessibility.
