The Vice-President, Sen. Kashim Shettima has urged Nigerian Deposit Money Banks (DMBs) to tackle the issue of exploitation of Nigerians by PoS operators, who are charging arbitrarily for cash.
Shettima made the call on Friday in Abuja, at the 2024 Bankers ‘ Committee Retreat, noting that the unwholesome practices by some Point of Sale (PoS) agents are impeding the availability of cash.
According to him, the scarcity of cash is constituting an impediment to financial inclusion.
“We would like 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 about high and arbitrary charges and exploitation by rogue agents, which we are sure you will be able to tackle with concerted efforts,” he said.
Cash availability
Shettima, who was represented by the Special Adviser on Economic Affairs, Office of the Vice-President, Tope Fasua, urged the banks to ensure seamless availability of Naira notes to the banking public.
“Nigerians complain bitterly that they are unable to access even minimal cash when most needed,” he said.
- Shettima also said that there was a need for more initiatives towards the financing of MSMEs.
- He urged them to continue to support the efforts of the Federal Government in the area of consumer credit culture.
Dominance of Nigerian banks
According to Shettima, Nigerian banks have shown dominance in the West African region and beyond.
He cited the concept of new capability development as propounded by Prof. Ricardo Haussman of the Harvard Kennedy School.
“It suggested that a country should try using technology to export capabilities that it sees as a comparative advantage.
“Banking is one sector we have excelled at over the years. It is, therefore, a valid strategy for you to consolidate upon, as you continue to excel.
“The recent opening of Nigerian bank branches in France is a good testimony in this direction,” he said.
- Shettima urged the committee to continue to be at the cutting edge of risk management and to develop robust responses to the changing face and pace of banking and finance.
- He said this has greatly metamorphosed recently, with the incursion of different types of fintechs, Neobanks, agency banks, and other arrangements directed at improving financial inclusion.
What you should know
The Central Bank of Nigeria (CBN) had recently threatened to sanction the banks over cash scarcity as their customers found it difficult to withdraw from ATMs, thereby forcing them to patronize PoS operators, who charge arbitrarily.
- As a follow-up, the apex bank on Wednesday introduced dedicated hotlines and email addresses for the public to report challenges in accessing cash through deposit money banks (DMBs) and automated teller machines (ATMs).
- The circular mandates banks to ensure efficient cash disbursement both over-the-counter (OTC) and via ATMs.
The CBN emphasized its commitment to intensifying oversight to enforce compliance, as part of broader efforts to enhance currency availability and improve public access to cash.
