Vice President Kashim Shettima has called on the Central Bank of Nigeria and commercial banks to urgently address the growing concerns surrounding high and arbitrary charges imposed by Point-of-Sale, POS, operators, which he described as an impediment to financial inclusion in Nigeria.
Represented by the Special Adviser to the President on Economic matters, Dr Tope Fasua the VP said this in a speech delivered at the 2024 Annual Bankers’ Committee Retreat held on Friday in Abuja.
Shettima decried what he called the “moral hazard” and “adverse selection” issues associated with POS merchants who have been accused of exploiting customers with excessive transaction fees.
Many Nigerians have been complaining about the high POS charges, which have become a source of significant financial strain, especially during emergencies.
The VP, however, called for immediate regulatory action to curb such exploitative practices, urging the CBN and banks to step up efforts to ensure that POS charges are fair, transparent and reasonable.
He said: “We would want 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 bitterly that they are unable to access even minimal cash when most needed. There seems to have been some moral hazard and adverse selection problems with the involvement of street-side PoS merchants.
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“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 VP also called on the banking sector to do more to support Micro, Small and Medium Enterprises, which play a crucial role in the nation’s economic growth.
He encouraged banks to increase their involvement in financing MSMEs while continuing to support government efforts in building a robust consumer credit culture.
Shettima pointed out that many of the major economic transactions in the country have been facilitated by banks, and their growth is directly linked to the wider economic progress.
The Vice President also spoke about the ambitious reforms being undertaken by the government under President Bola Tinubu’s administration, including the unification of the Naira exchange rate, the removal of fuel subsidies and the ongoing tax reforms.
Shettima acknowledged the difficulties these changes have brought but stressed that they were necessary for Nigeria’s long-term economic stability.
He urged Nigerians to remain patient as these reforms take hold, pointing to early signs of progress, such as the rise in non-oil exports and the country’s trade surplus in recent quarters.
In his opening address at the retreat, the CBN Governor, Olayemi Cardoso noted that while Nigeria faces numerous challenges, such as rising inflation, poverty, and unemployment, positive strides are being made by both the government and private sector.
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