Business

PoS operators increase withdrawal charges, blame electronic levy, cash scarcity

Published

2 years ago

December 19, 2024

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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.

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 said 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.

Related Topics:CBN Central Bank of Nigeria Electronic money transfer levy POS OPERATORS

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Nigeria’s foreign reserves rise to $52.66 billion, highest in 17 years

Published

4 weeks ago

August 24, 2026

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Nigeria’s gross external reserves surged to $52.66 billion as of August 19, reaching their highest level in more than 17 years.

This was contained in the latest data from the Central Bank of Nigeria (CBN).

The reserves stood at $52.65 billion on August 19, up from $45.56 billion recorded on January 2, representing an increase of about $7.09 billion or 15.6 percent in less than eight months.

The latest position also surpasses the previous 2026 peak of about $52.04 billion recorded in July.

Data from the CBN showed that reserves crossed the $52 billion mark for the first time this year in July, reaching $52.02 billion on July 20.

The figure was the highest since January 2009, when reserves stood at about $52.01 billion.

The reserve position had declined earlier in the year, falling from $49.18 billion on April 1 to about $48.33 billion in early May.

It subsequently recovered, crossing the $50 billion mark in June and rising above $51 billion before surpassing $52 billion in July.

The governor of the CBN, Olayemi Cardoso, had earlier attributed the increase in reserves to stronger foreign exchange inflows, including receipts from crude-oil-related taxes and third-party inflows.

Cardoso also said the reserve level provided import cover for about 11 months of goods and services, significantly above the three-month international benchmark.

The increase in the external buffer has coincided with improved foreign exchange liquidity and a stronger naira.

Recent market data showed the naira appreciating to about N1,346.49 per dollar in the official market last week.

Also, in its 2026 macroeconomic outlook, the apex bank projected that Nigeria’s external reserves would rise to about $51.04 billion by the end of the year.

The latest figure is about $1.62 billion above that projection.

Business

Wema Bank wins Euromoney’s Nigeria’s best digital bank for consumers 2026 award

Published

2 months ago

July 20, 2026

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… Recognition affirms bank’s leadership in digital innovation and customer-centric banking

Wema Bank, Nigeria’s oldest indigenous bank and pioneer of Africa’s first fully digital bank, ALAT, recently added another feather to its already heavily-studded cap after it was named Nigeria’s Best Digital Bank for Consumers 2026 by Euromoney, one of the world’s most respected authorities on financial services and banking excellence.

The prestigious recognition affirms the Bank’s sustained leadership in digital innovation, customer experience and financial inclusion, reinforcing its position as one of Nigeria’s leading technology-driven financial institutions.

Presented annually, the Euromoney Awards for Excellence celebrate banks that are redefining financial services through innovation, measurable impact and outstanding customer value.

In selecting Wema Bank for the award, Euromoney recognised the Bank’s successful digital transformation journey, its continuous innovation through ALAT, Africa’s first fully digital bank, and its unwavering commitment to delivering simpler, smarter and more accessible banking experiences for customers.

Commenting on the recognition, the Managing Director/Chief Executive Officer of Wema Bank, Moruf Oseni, said: “This award is a strong validation of the deliberate investments we have made over the years to build a truly digital bank that puts customers at the centre of everything we do. Innovation for us has never been about technology for its own sake. It has always been about creating solutions that make banking easier, faster, safer and more rewarding for every customer.

“From pioneering Africa’s first fully digital bank with ALAT to continuously evolving our digital capabilities, we have remained focused on anticipating customer needs and building experiences that create real value. We are honoured by this recognition from Euromoney and inspired to continue pushing the boundaries of innovation as we shape the future of banking in Nigeria.”

A key milestone in Wema Bank’s digital transformation has been the evolution and upgraded version of ALAT, which introduced next-generation capabilities including voice banking, tap-to-pay functionality, personalised financial services and integrated investment opportunities through strategic partnerships.

Together with faster digital onboarding, AI-powered fraud monitoring, intelligent customer personalisation and an expanding agency banking network, these innovations continue to enhance customer experience while extending financial services to more Nigerians.

Euromoney also recognised Wema Bank’s ability to leverage technology to build deeper customer relationships through data-driven personalisation, enabling customers to receive tailored recommendations across savings, investments and credit products based on their financial needs and behaviour.

For over eight decades, Wema Bank has remained at the forefront of innovation in Nigeria’s financial services industry. As the pioneer of Africa’s first fully digital bank, the Bank continues to redefine banking by combining technology, customer insight and innovation to deliver seamless, secure and inclusive financial solutions for individuals, businesses and communities.

The Euromoney recognition further reinforces Wema Bank’s commitment to building the future of banking through continuous innovation, operational excellence and customer-centric solutions that create lasting value.

Business

CBN revokes licences of 46 microfinance banks

Published

3 months ago

July 2, 2026

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The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 microfinance banks (MFBs).

The apex bank cited the failure of the banks to meet regulatory requirements for continued operation.

In a statement issued on Wednesday by Hakama Sidi-Ali, acting director of corporate communications, the apex bank said the revocation took effect from July 1, 2026, in line with Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020.

The CBN said the action was approved by Olayemi Cardoso, the apex bank governor, as part of efforts to safeguard the stability of the financial system, protect depositors and ensure compliance with regulatory standards.

“According to the revocation order, the action became necessary because of one or more of the circumstances: Insufficient assets to meet liabilities, closure of operations without the CBN approval, Inactivity and cessation of financial intermediation, failure to commence operations within 12 months of licence approval, and failure to maintain minimum capital funds unimpaired by losses,” CBN said.

“The revocation of the licences is part of the Bank’s ongoing efforts to safeguard the stability of the financial sector, protect depositors, and ensure that licensed institutions comply with current laws and regulatory requirements,” the statement reads.

CBN added that it remains committed to promoting a safe, sound and resilient financial system and would continue to take supervisory and regulatory actions where necessary to maintain public confidence in Nigeria’s financial sector.

The affected microfinance banks are:

1. Minji-Se Churchill MFB (tier 1) in Rivers

2. Merchant MFB (tier 2) in Abia

3. Janmaa MFB (tier 1) in Kwara

4. Busu MFB (tier 2) in Niger

5. Gold MFB (tier 1) in Lagos

6. Zain MFB, formerly Dawakin Tofa MFB, a tier 2 lender in Kano

7. Bompai MFB (tier 1) in Kano

8. Ajwa MFB (tier 2) in Kano

9. Now Now Digital MFB (tier 2) in Kano

10. Crystabel Microfinance Bank (tier 1) in Bayelsa

11. Chanelle MFB (state-based) in Lagos

12. Abia SME MFB (tier 1) in Abia

13. Kamba MFB (tier 2) in Kebbi

14. Iwade MFB (tier 2) in Ogun

15. Winview MFB (tier 1) in Abuja

16. Zuru MFB (tier 2) in Kebbi

17. Minjibir MFB (tier 1) in Kano

18. Shanono MFB (tier 2) in Kano

19. Sumaila MFB (tier 2) in Kano

20. Rimin Gado MFB (tier 2) in Kano

21. Mwaghavul MFB (state-based) in Plateau

22. Sycamore MFB (tier 2) Kano

23. TOFA MFB (tier 2) in Kano

24. Safegate MFB (tier 1) in Lagos

25. Creekline MFB (tier 2) in Delta

26. Bestar MFB (tier 1) in Oyo

27. Livingspring MFB (tier 1) in Cross River

28. Apple MFB (tier 2) in Ogun

29. Stanford MFB (state-based) in Uyo

30. Frontline MFB (tier 2) in Anambra

31. Zafec MFB (tier 2) in Kaduna

32. Supreme MFB (tier 1) in Lagos

33. Bejin-Doko MFB (tier 2) in Niger

34. Kanopoly MFB (tier 1) in Kano

35. Bellbank MFB, formerly Tsanyawa (Tier 2), in Kano

36. Yeneng MFB (tier 2) in Plateau

37. Creditville MFB (tier 1) in Lagos

38. MBAG MFB (tier 1) in Lagos

39. Straight Sahara MFB (tier 1) in Benue

40. Our Pass MFB (tier 2) in Ondo

41. VERDANT MFB (tier 1) in Lagos

42. Basawa MFB (tier 2) in Kaduna

43. Casha MFB (tier 2) in Abuja

44. Esteem MFB (tier 2) in Kano

45. Enterpreneur MFB (tier 1) in Lagos

46. Avantus MFB (tier 2) in Osun

It would be recalled that the CBN increased the capital base for banks, in March 2024, giving them until March 31, 2026, to meet the requirements.

On March 6, 2026, the financial regulator disclosed that 30 banks have met the minimum capital requirement.