Shettima urges CBN, banks to address arbitrary PoS charges
Vice President Kashim Shettima has called on the Central Bank of Nigeria and commercial banks to urgently address the growing concerns surrounding high and arbitrary charges imposed by Point-of-Sale operators, which he described as an impediment to financial inclusion in Nigeria.
Represented by the Special Adviser to the President on Economic matters, Dr Tope Fasua, Shettima made the call in a speech delivered at the 2024 Annual Bankers’ Committee Retreat in Abuja on Friday.
He decried what he called the “moral hazard” and “adverse selection” issues associated with POS merchants who have been accused of exploiting customers with excessive transaction fees.
Many Nigerians have been complaining about the high POS charges, which have become a source of significant financial strain, especially during emergencies.
The Vice President called for immediate regulatory action to curb the exploitative practices in the POS sector.
He urged the CBN and banks to step up efforts to ensure that POS charges are fair, transparent, and reasonable.
He said, “We would want to take this opportunity to appeal strongly to the committee to urgently clear up thorny issues in the sector, some of which are impeding the efforts at financial and economic inclusion.
“Nigerians complain bitterly that they are unable to access even minimal cash when most needed. There seems to have been some moral hazard and adverse selection problem with the involvement of street-side POS merchants.
“Nigerians complain about high and arbitrary charges and exploitation by rogue agents which we are sure you will be able to tackle, with concerted efforts.”
Shettima also called on the banking sector to do more to support Micro, Small, and Medium Enterprises, which play a crucial role in Nigeria’s economic growth.
He encouraged banks to increase their involvement in financing MSMEs, while continuing to support government efforts in building a robust consumer credit culture.
The Vice President highlighted that these initiatives are critical to boosting economic growth, especially as the government seeks to reduce reliance on oil and diversify the economy.
Shettima commended the banking sector for its significant role in the economic development of Nigeria.
He pointed out that many of the major economic transactions in the country have been facilitated by banks, and their growth is directly linked to the wider economic progress.
The Vice President also spoke about the ambitious reforms being undertaken by the government under President Bola Tinubu’s administration, including the unification of the Naira exchange rate, the removal of fuel subsidies, and the ongoing tax reforms.
Shettima acknowledged the difficulties these changes have brought but stressed that they were necessary for Nigeria’s long-term economic stability.
He urged Nigerians to remain patient as these reforms take hold, pointing to early signs of progress, such as the rise in non-oil exports and the country’s trade surplus in recent quarters.
In his opening address at the retreat, the Governor of the CBN, Olayemi Cardoso, welcomed participants to the critical gathering, which he described as essential to shaping the future of Nigeria’s financial and banking systems.
He noted that while Nigeria faces numerous challenges, such as rising inflation, poverty, and unemployment, there are positive strides being made by both the government and private sector.
“However, while progress has been steady, it is evident that the road ahead remains long. The work before us requires focus, innovation, and unwavering resolve to reshape our collective future.
“This is why the theme of this retreat has been carefully chosen—to inspire deeper collaboration and renewed commitment as we strive to build a brighter future for ourselves and generations to come.,” Cardoso said.
He further highlighted the importance of collaboration, innovation, and private-public partnerships in addressing Nigeria’s developmental challenges.
