OPS Criticizes CBN’s PoS Withdrawal Limit, Calls It Out of Touch with Nigeria’s Economic Reality
The Organised Private Sector (OPS) has criticized the Central Bank of Nigeria (CBN) over its recent decision to limit withdrawals from Point-of-Sale (PoS) agents, calling the move disconnected from the reality of Nigeria’s economic situation.
On Wednesday, December 18, 2024, the CBN introduced a daily cash-out limit of N100,000 per customer for PoS transactions, part of its efforts to further promote the cashless policy.
The directive, issued in a circular to Deposit Money Banks, Microfinance Banks, and other stakeholders, mandates immediate compliance. The CBN’s new policy stipulates that PoS agents can only process a cumulative cash-out of N1.2 million per day, with each customer restricted to a maximum of N500,000 in weekly withdrawals. The circular also enforces stricter regulations on agent banking, including the use of float accounts and mandatory electronic transaction reports.
OPS leaders have strongly opposed the new measures, arguing that the CBN is out of touch with the challenges facing Nigerian businesses and consumers. Dele Oye, President of the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture, questioned the practicality of the policy, pointing out the widespread lack of banking infrastructure, particularly in rural areas. Oye highlighted the fact that some local governments have no bank branches at all, making it difficult for people to access electronic banking services.
Segun Kuti-George, National Vice President of the Nigerian Association of Small Scale Industrialists, echoed these concerns, emphasizing that the policy would disproportionately affect rural communities, where cash transactions are still the primary method of conducting business. He argued that the success of the policy hinges on addressing the infrastructure gap and ensuring that rural residents have access to the necessary tools to participate in the cashless economy.
Despite these criticisms, some industry figures have supported the CBN’s move. Olusoji Oluwole, President of the Association of Senior Staff of Banks, Insurance, and Financial Institutions, praised the new policy for reinforcing the role of PoS operators in enhancing financial inclusion. He believes the limits will curb exploitative practices by ensuring that cash flows back into the banking system, ultimately strengthening the overall banking ecosystem.
However, others remain concerned about the impact of cash scarcity on business activities. Dr. Muda Yusuf, Director of the Centre for Promotion of Private Enterprise, warned that the cash shortage could lead to a slowdown in business transactions, especially in rural areas where cash is still heavily relied upon. He stressed that disruptions in cash flow affect the velocity of transactions, potentially harming the economy at large.
