By Grace Alegba
Point of Sale (PoS) operators continue to play a critical role in mitigating cash scarcity and supporting Nigerians’ financial needs.
These reflect innovation amidst ongoing economic changes and policies.
This development signifies adaptation to the challenges posed by cash scarcity and the Central Bank of Nigeria (CBN) ‘s initiatives for a cashless economy.
As cash availability fluctuated, especially during peak periods like the year-end holiday season, these operators found innovative strategies to maintain liquidity and continue serving their customers effectively.
In 2024, PoS operators demonstrated resilience.
Findings by the News Agency of Nigeria (NAN) in Lagos revealed that PoS operators managed to secure and circulate cash by sourcing it from various local entities.
These include traders, gas stations, transporters, and religious organisations.
This network effectively allowed them to remain operational despite the cash withdrawal limits imposed on traditional banking channels, showcasing their ability to adapt to the evolving economic landscape.
The measures implemented by the apex bank, particularly around the festive period, aimed to ease cash flow challenges.
On November 29, 2024, CBN advised bank customers that from December 1, 2024, they could report any difficulties withdrawing cash from bank branches or ATMs to the apex bank.
NAN recalls that CBN Governor Olayemi Cardoso, on November 28, advised bank customers to report any difficulties withdrawing cash from their branches or Automated Teller Machines (ATMs) to the apex bank from December 1, 2024.
He said this during the 2024 annual bankers’ dinner in Lagos, organised by the Chartered Institute of Bankers of Nigeria (CIBN) in Lagos.
According to him, the CBN will maintain a robust cash buffer to meet the country’s needs, particularly during high-demand periods such as the festive season and year-end.
He said the focus was on ensuring seamless cash flow for Nigerians while fostering trust and stability in the financial system.
He explained that the Payment System Vision initiative for 2025 would further enhance confidence in the nation’s payment system.
He noted that settling financial transactions would improve in 2025 as delays would be addressed.
PoS operators like Mrs Adeola Ademola, who manage businesses in areas like Mangoro, have relied on diverse sources to raise the necessary cash.
She cited the practice of paying commissions to secure cash from filling stations and even some bank personnel.
“Most traders do not charge us a commission, but some ask us to cover bank charges. So, for every N100,000, we add N200,” she said.
She added that the daily ATM withdrawal limits imposed by banks since December 2024 into the new year range from N50,000 to as low as N5,000, depending on the bank.
“The cash scarcity has persisted into the new year, but we are hopeful that things will normalise by the second week of January 2025,” she said.
Mr Stanley Ejike, another PoS operator in Oshodi, told NAN that he does not need to collect cash from the bank as he typically reinvests proceeds from his family businesses into his operations.
He explained that, in addition to selling shoes, he owns shops in various market locations and operates a transportation business, where drivers also deliver cash.
“We collect money from our shops and use it for our PoS machine business,” he said.
Mrs Eunice Daniel, an operator residing in Sango Ota, a boundary community in Ogun, also mentioned that she sources cash from petty traders and major goods sellers.
She explained that she typically pays traders N1,000 for every N200,000 she collects.
“Some traders, like my egg suppliers, sometimes give me cash for free,” Daniel added.
Another operator, Mrs Adeola Alade, from Ado-Odo/Ota Local Government in Sango Ota, shared a similar experience.
Mrs Margaret Orji, an operator in Iyana Ipaja, told NAN that she often sources her initial business cash from church offerings collected during Sunday and weekday services.
She explained that she receives cash from the church after Sunday service and transfers the equivalent amount to the church’s bank account.
She added that she obtains additional cash from petty traders and filling stations but pays a commission for the money she receives.
Some civil servants who spoke with NAN confirmed that they occasionally obtain cash from traders who prefer to give some money to customers in exchange for bank transfers.
They said that this practice helps traders avoid the inconvenience of depositing cash at banks.
