VP Shettima Criticizes Exploitative PoS Charges, Urges CBN And Banks To Act Swiftly

Vice President Kashim Shettima has expressed concerns over the exploitative practices of Point of Sale (PoS) operators in Nigeria. Speaking at the 2024 Annual Bankers’ Committee Retreat in Abuja, Shettima urged the Central Bank of Nigeria (CBN) and commercial banks to take decisive action against these unfair practices, which he described as a major obstacle to financial inclusion.

Challenges of Arbitrary PoS Charges
Represented by Dr. Tope Fasua, Special Adviser to the President on Economic Matters, Shettima highlighted the growing frustration of Nigerians regarding high and arbitrary PoS charges. Many PoS merchants have been accused of imposing excessive transaction fees, creating what the VP termed “moral hazard” and “adverse selection” issues in the financial system.

Key Issues Raised:

Impediments to Financial Inclusion:
- Unfair PoS charges deter many Nigerians from accessing basic financial services.
- The arbitrary nature of these charges undermines trust in the system.
Public Complaints:
- Many citizens report difficulties in accessing cash, especially during emergencies.
- PoS merchants, particularly rogue agents, are exploiting the lack of regulation to impose high fees.

Call to Action for CBN and Banks
Vice President Shettima urged the CBN and banks to prioritize:

Regulation of PoS Operators: Establish clear guidelines to ensure fair and transparent transaction fees.
Enhancing Financial Inclusion: Resolve existing barriers to make financial services accessible and affordable for all Nigerians.

He emphasized, “Nigerians bitterly complain about exploitation by rogue agents. We trust the banking sector can tackle this with concerted efforts.”

Support for MSMEs
Shettima also called for increased support for Micro, Small, and Medium Enterprises (MSMEs). He encouraged banks to:

Expand financing opportunities for MSMEs, which are pivotal to Nigeria’s economic growth.
Support the government’s drive to foster a robust consumer credit culture.

Conclusion
VP Shettima’s call for urgent action underscores the need for a collaborative approach among stakeholders to address exploitative PoS practices. By ensuring fair charges and supporting MSMEs, the financial sector can play a vital role in promoting economic growth and financial inclusion across Nigeria.