CBN Prohibits Cash-in and Cash-out Transactions via PoS for Agents
The Central Bank of Nigeria (CBN) has released a circular announcing the Exposure Draft of the Regulatory Framework for Agent Banking in Nigeria.
As per Section 8.3 of the guidelines, the CBN has prohibited agents from using PoS terminals for cash-in and cash-out transactions.
This action was taken to streamline activities and ensure that stakeholders take appropriate risk mitigation measures.
Cashless Transactions Soar to N48 Trillion Amidst Naira Crisis
In March 2023, Nigeria saw a significant increase in e-transactions as a result of the notable rise in failed transactions experienced in February and March of the same year.
In March, it was reported that Nigerians conducted 1.35 trillion transactions through Point of Sale (PoS) terminals and other channels.
However, there was also a significant increase in cash transactions, which rose by 31.35% from N37.67 trillion in February to N49.48 trillion in March.
Cashless Transactions Reach Record High in March 2023 with Glitches Reported
In March 2023, the Nigeria Inter-Bank Settlement System (NIBSS) reported an unprecedented surge in cashless transactions, with 1.35 billion transactions conducted through electronic channels.
The NIBSS report, which includes data from Nigeria Instant Payment System (NIPS) and Point of Sale (PoS) terminals, indicates that instant payments accounted for N48.33 trillion, while PoS transactions recorded about N1.15 trillion in one month.
Despite this boost, the CBN’s cashless policy was disrupted by transaction glitches across all channels.
Despite transaction glitches across all channels, cashless transactions in the first quarter of 2023 rose by 44.84% from N87.49 trillion in the same period of 2022 to N126.73 trillion.
NIBSS Reports Bank Customers Spending N92.2 Billion on PoS Transactions in 2022
Bank customers are said to have spent approximately N92.2 billion using Point of Sales terminals in the first seven months of 2022, according to the NIBSS.
This amount was accrued from transactions totaling N4.61 trillion, with fees charged on withdrawals or transactions between N1,000 to N5,000 on PoS.