PoS operators drive cash flow amid economic changes

Point of Sales (PoS) operators continue to play a critical role in mitigating cash scarcity and supporting the financial needs of Nigerians.

These reflect innovation amidst ongoing economic changes and policies.

The development signifies adaptation to the challenges posed by cash scarcity and the cashless economy initiatives by the Central Bank of Nigeria (CBN).

As cash availability fluctuated, especially during peak periods like the year-end holiday season, these operators found innovative strategies to maintain liquidity and continue serving their customers effectively.

In 2024, PoS operators demonstrated resilience.

Findings by our reporter in Lagos revealed that PoS operators managed to secure and circulate cash by sourcing it from various local entities.

These include traders, gas stations, transporters and religious organisations.

This network effectively allowed them to remain operational in spite of the cash withdrawal limits imposed on traditional banking channels, showcasing their ability to adapt to the evolving economic landscape.

The measures implemented by the apex bank, particularly around the festive period, were aimed at easing cash flow challenges.

On Nov. 29, 2024, CBN advised bank customers that from Dec. 1, 2024, they could report any difficulties withdrawing cash from bank branches or ATMs to the apex bank.

Recall that CBN Governor, Olayemi Cardoso, on Nov. 28, advised bank customers to report any difficulties withdrawing cash from their branches or Automated Teller Machines(ATMs) to the apex bank, from Dec. 1, 2024.

He said this during the 2024 annual bankers dinner in Lagos organised by the Chartered Institute of Bankers of Nigeria (CIBN) in Lagos.

According to him, the CBN will continue to maintain a robust cash buffer to meet the country’s needs, particularly during high-demand periods such as the festive season and year-end.

He said that the focus was to ensure seamless cash flow for Nigerians while fostering trust and stability in the financial system.

He explained the Payment System Vision initiative for 2025 would further enhance confidence in the nation’s payment system, while noting that settling financial transactions would become better in 2025 as delays would be addressed.

PoS operators like Mrs Adeola Ademola, who manage businesses in areas like Mangoro, have relied on diverse sources to raise the necessary cash.

She cited the practice of paying commissions to secure cash from filling stations and even some bank personnel.

“Most traders do not charge us a commission, but some ask us to cover bank charges. So, for every N100,000, we add N200,” she said.

She added that the daily ATM withdrawal limits imposed by banks since December 2024, into the new year, range from N50,000 to as low as N5,000, depending on the bank.

“The cash scarcity has persisted into the new year, but we are hopeful that things will normalise by the second week of January 2025,” she said.

Mr Stanley Ejike, another PoS operator in Oshodi, told NAN that he does not need to collect cash from the bank as he typically reinvests proceeds from his family businesses into his operations.

He explained that, in addition to selling shoes, he owns shops in various locations within the market and operates a transportation business, where drivers also deliver cash.

“We collect money from our shops and use it for our PoS machine business,” he said.

Mrs Eunice Daniel, an operator residing in Sango Ota, a boundary community in Ogun, also mentioned that she sources cash from petty traders and major goods sellers.

She explained that she typically pays traders N1,000 for every N200,000 she collects.

“Some of the traders, like my egg suppliers, sometimes give me cash for free,” Daniel added.

Another operator, Mrs Adeola Alade, from Ado-Odo/Ota Local Government in Sango Ota, shared a similar experience.

Mrs Margaret Orji, an operator in Iyana Ipaja, told NAN that she often sources her initial cash for business from church offerings collected during Sunday and weekday services.

She explained that on Sundays, she receives cash from the church after service and transfers the equivalent amount to the church’s bank account.

She added that she also obtains additional cash from petty traders and filling stations but pays a commission for the cash she receives.

Some civil servants who spoke with NAN confirmed that they occasionally obtain cash from traders who prefer to give cash to customers in exchange for bank transfers.

They said that this practice helps traders avoid the inconvenience of depositing cash at banks.