Vice President Kashim Shettima has urged the Central Bank of Nigeria (CBN) and commercial banks to address the growing concerns over high and arbitrary charges by Point-of-Sale (POS) operators, calling it a significant barrier to financial inclusion in Nigeria.
Speaking at the 2024 Annual Bankers’ Committee Retreat in Abuja on Friday, Shettima, represented by the Special Adviser to the President on Economic Matters, Dr. Tope Fasua, described the exploitative practices of POS merchants as a “moral hazard” and called for immediate regulatory intervention.
“Nigerians complain bitterly that they are unable to access even minimal cash when most needed,” Shettima said. “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.”
The Vice President emphasized the need for fair, transparent, and reasonable transaction fees to ease financial strain on Nigerians, particularly during emergencies.
Support for MSMEs and Economic Reforms
Shettima also called on the banking sector to enhance its support for Micro, Small, and Medium Enterprises (MSMEs), which are pivotal to Nigeria’s economic growth. He encouraged banks to play a more active role in financing MSMEs and supporting government initiatives aimed at fostering a consumer credit culture.
Highlighting the Tinubu administration’s economic reforms—including the unification of the Naira exchange rate, the removal of fuel subsidies, and ongoing tax reforms—Shettima acknowledged the difficulties these measures have posed. However, he stressed their necessity for Nigeria’s long-term stability and urged patience as reforms take effect.
“We see early signs of progress,” Shettima noted, citing the rise in non-oil exports and a trade surplus in recent quarters.
Collaboration and Innovation Key to Economic Growth
In his opening address, CBN Governor Olayemi Cardoso welcomed participants to the retreat, emphasizing the importance of shaping Nigeria’s financial and banking systems amid challenges like inflation, poverty, and unemployment.
“The work before us requires focus, innovation, and unwavering resolve to reshape our collective future,” Cardoso stated. He also underscored the value of private-public partnerships and collaboration in addressing Nigeria’s developmental issues.
The retreat, which gathered financial experts and stakeholders, served as a platform to chart the future of Nigeria’s banking sector and drive solutions for economic growth and inclusion.
