Point-of-sale (PoS) operators across Nigeria have increased withdrawal charges from N100 to N150 or N200 for every N5,000 transaction.
The operators attribute the hike to the N50 electronic money transfer levy imposed by the Central Bank of Nigeria (CBN) on financial technology (fintechs) companies.
In September, fintech companies announced plans to introduce a N50 stamp duty fee on transactions of N10,000 and above.
The technology firms said the move complies with Federal Inland Revenue Service (FIRS) regulations, noting that the fee will be applied to electronic transfers into personal and business accounts.
The stamp duty or electronic money transfer levy (EMTL) is a single, one-off charge of N50 on electronic receipt or transfer of money deposited in any commercial money bank or financial institution on any type of account on sums of N10,000 and above.
On December 1, the federal government began enforcing the policy across fintech platforms such as OPay, Moniepoint, Kuda, and others.
Speaking to TheCable, Sarafadeen Fasasi, national president of the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN), confirmed that the policy’s implementation has driven PoS operators to adjust their service charges.
“Yes, it is because of the electronic levy. We have to transfer the cost, the cost of the electronic levy that are being charged. It started immediately the FIRS implemented the directive of N50 charges,” Fasasi said.
‘STAMP DUTY NOT NEW BUT IMPLEMENTATION HAS BEEN PARTIAL’
Fasasi clarified that the stamp duty is not a new policy but has only recently been extended to fintech operators, who dominate about 70 percent of the PoS agent market.
“Stamp duty is not new but the implementation has been partial. Only agents that are of banks origin… you know we have two types of agents. There are agents that are deployed by commercial banks, the UBA, Zenith and we have those that are of non-banks, that are of fintechs, like OPay, Moniepoint, Paga and Palmpay,” he said.
“Before now, only bank agents that are of bank origin are being charged N50 because the bank has implemented it for long. But now, the regulator has now extended it that whether you are fintech or anything, just go and charge that N50. So immediately they started… and you know they control the larger part of the agent space, about 70 percent. That is why it’s like a new policy.
“It is not a new policy but it’s because it is now being implemented by the majority of fintech. Then, the PoS agents have no choice than to also implement it immediately.”
Several PoS operators who spoke to TheCable reported that the new levy has increased their operational costs, prompting them to raise withdrawal charges.
In Ketu, Lagos state, a PoS operator identified as Uche, said fintech companies now charge for both sending and receiving transactions.
“Initially, when you send money to agents, they don’t charge but now they charge. When you send, they charge you. When I receive, they charge me,” he said.
“Things have increased. Data is now expensive. We have to consider all these things. We buy data. We pay for shop space and taxes every day. To stay afloat, we need to increase to meet up.”
Another PoS operator in Mowe, Ogun state, explained that the combined deductions from fintech providers, and the CBN have reduced their profit margins significantly.
“If a mobile bank is charging N200 for N10,000 and from there, central bank wants to remove N50, out of N150 you have left, the merchant as well whether Moniepoint or OPay, whatever terminal the person is using, they are also removing their charges as well,” she said.
“So, what do you have left? You have to buy data to operate your PoS. Putting all that into consideration, we can’t be paying for what the central bank is charging us. So that is why we have an increment in service charge. N10,000 is now N250. Most times, N300.”
Mary Balogun, another PoS operator in Mowe, attributed the price hike to both the N50 levy and cash scarcity due to the festive season.
“They started deducting N50 on December 1st but we in Mowe started implementing the charge last week. There is also cash scarcity everywhere because of the festive season,” Balogun said.
In Ogba, Lagos state, a PoS operator, who spoke on condition of anonymity, expressed similar concerns, stating that in addition to the stamp duty deductions, banks have limited cash supplies.
In Abuja, PoS operators charge N200 for N5,000 and N500 for N10,000.
Usman, a PoS operator in Kubwa, Abuja, explained that obtaining cash has become challenging for them.
“I have to pay to collect money. It is not easy to get enough cash from the banks,” Usman said.
He said hopefully the price would return to normal after the festive season.
In a new development, the CBN has set a daily withdrawal limit on PoS terminals to N100,000 per customer.
The apex bank also limited the cash transactions of each PoS operator to N1.2 million daily.
CBN said the restriction is in line with its ongoing efforts to advance a cashless economy.
