The House is set to investigate the failure of commercial banks to pay customers over the counter forcing them to patronize POS operators who sell naira notes at exorbitant prices
The House of Representatives has resolved to investigate the sale of naira notes at exorbitant price by Point-of-Sale (POS) operators across the country.
The House expressed concern over the failure of commercial banks to pay customers over the counter, thus forcing them to resort to POS operators to get cash at excorbitant cost.
The lawmakers accordingly urged the Central Bank of Nigeria (CBN) to immediately commence proper monitoring and supervision of banks daily to ascertain the extent of over-the-counter payment to customers.
The House made these resolutions following the adoption of a motion on the “need to curb the sale of naira notes by the Point of Sale (POS) operators in Nigeria” at the plenary on Thursday, December 21, 2023.
According to the motion sponsor, Rep. Mohammed Dan Abba Shehu (PDP, Bauchi), POS machines were adopted to create ease in financial transactions and reduce the burden on commercial banks but regretted that the exploitation of the machines is fast making this banking system a menace.
Rep. Shehu, in his lead debate, observed that operators often demand exorbitant charges on transactions from citizens who are already terribly affected with the harsh economic reality.
“Point-of-sale machines have been adopted in advanced countries like the US, UK, and South Africa to facilitate financial transformation without manipulation, this innovative trend was adopted in Nigeria a few years ago to curb financial hook-ups and address daily challenges faced by customers to access funds.
“POS operators are now selling naira notes at exorbitant prices. They charge one thousand naira for a three to four hundred naira withdrawal transaction, while ten thousand naira goes for four thousand naira among citizens who are currently experiencing economic hardship,” he said.
To this end, the House directed its committees on banking regulations, and digital and electronic banking to investigate the failure of commercial banks to dispense cash and the exorbitant sales of naira note by POS operators.
