SPECIAL REPORT: Money Crunch, Exorbitant POS Prices within the Face of ATM Shortages
By Financial Confidential Crew
The banking system in Nigeria has undergone important transformations for the reason that Nineties. Gone are the times of tedious paperwork and lengthy queues that often snaked from the financial institution’s entrances to the cashier’s submit.
Nonetheless, the latest money crunch has left many Nigerians pissed off and dissatisfied. Because the Christmas season approached, many financial institution prospects complained concerning the non-availability of money in Automated Teller Machines (ATMs). This scarcity has led to exorbitant prices by Level-of-Sale (POS) operators, who declare be buying money from different sources to maintain their companies working.
Checks by Financial Confidential throughout the nation revealed that POS transaction of N3,000, which was N100, is now N150 or above, whereas that of N10,000, which was N200 prior to now, is now N500.
The state of affairs is additional sophisticated by the introduction of the Digital Cash Switch Levy of N50 by the Federal Inland Income Companies (FIRS). This levy is charged on any digital influx of N10,000 and above. A number of fintech platforms notified their prospects in December that they’d begin amassing the N50 levy in compliance with the Federal Authorities Stamp Obligation Act.
Abuja
A latest go to to a number of ATMs within the metropolis revealed that many weren’t dishing out money. On the Sterling Financial institution ATM positioned at Everlasting Filling Station, Wuye axis, there was no queue, however the machine was not dishing out money.
Equally, on the GTBank department at Space 3, Garki, the ATMs have been working completely, however there was little or no queue of individuals attempting to withdraw cash.
Based on the safety guard at a Zenith Financial institution department in Garki, solely two out of the 5 ATMs have been dishing out money. One of many purposeful ATMs was described as “very delicate” and infrequently disbursed money to prospects. The opposite purposeful ATM had been dishing out money since morning however finally ran out of money and stopped dishing out.
Kano
The state of affairs in Kano is peculiar, because the residents who spoke to Financial Confidential consider that withdrawing cash from the financial institution at this era comes with loads of complications. Therefore, they like to maintain their money at house to keep away from dispensary errors and POS prices, besides once they don’t have any different selection in any respect.
Kwara
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For many residents of Ilorin and different surrounding cities, ATMs are not viable choices due to transportation value to the banks. Therefore, they like POS, which is simply at their doorstep even with its exorbitant prices. Secondly, Financial institution ATMs don’t give greater than N10,000.
Nasarawa
Random checks at Mararaba, Masaka and Keffi confirmed that many of the ATMs weren’t working whereas some have been dishing out solely N5,000 .
Nonetheless, an Financial confidential investigation revealed that different components which will doubtless trigger a money crunch embrace:
1. Money Administration Points: Banks could not replenish ATMs steadily sufficient, resulting in money shortages.
2. Elevated Demand: Excessive-demand intervals, reminiscent of holidays, festivals, or particular occasions, can result in ATM money shortages.
3. Technical Points: ATM malfunctions, software program glitches, or connectivity issues can forestall ATMs from dishing out money.
4. Money Racketeering: In some circumstances, people or teams could deliberately withdraw massive quantities of money from ATMs to create shortages and revenue from different money sources.
5. Safety Considerations: Banks could quickly shut down ATMs or restrict money withdrawals on account of safety considerations, reminiscent of theft threats or ATM bombing makes an attempt.
6. Community Connectivity Points: Issues with the ATM community or connectivity can forestall ATMs from functioning correctly.
7. Energy Outages: Extended energy outages could cause ATMs to close down, resulting in money shortages.
8. Upkeep and Upgrades: ATMs could also be taken offline for upkeep, upgrades, or software program updates, lowering the variety of out there ATMs.
9. Money Logistics Points: Issues with money transportation, storage, or dealing with can result in delays in replenishing ATMs.
In the meantime, the Central Financial institution of Nigeria (CBN) lately issued a press release which says that:
”Efficient December 1, 2024, prospects are inspired to report any difficulties withdrawing money from financial institution branches or ATMs on to the CBN by way of designated cellphone numbers and e-mail addresses for his or her respective states. Pointers will likely be distributed broadly to lift public consciousness.”
This latest money crunch has led to considerations about money racketeering throughout the banking system, notably throughout peak intervals just like the yuletide season.
One other situation is whether or not the ATMs are being step by step phased out or whether or not we nonetheless want them within the banking sector. It’s because the inconsistencies within the machines now make Nigerians susceptible to exorbitant prices by POS operators.
