Vice President Kashim Shettima has called on the Central Bank of Nigeria (CBN) and commercial banks to urgently address the increasing concerns over high and arbitrary charges imposed by Point-of-Sale (PoS) operators. Speaking through the Special Adviser to the President on Economic Matters, Dr. Tope Fasua, at the 2024 Annual Bankers’ Committee Retreat in Abuja, Shettima highlighted how these excessive transaction fees are impeding financial inclusion in the country.
The Vice President criticized the “moral hazard” and “adverse selection” problems caused by PoS merchants who are accused of exploiting customers, particularly during emergencies when access to cash is critical. Nigerians have raised alarm over the burden of these charges, which have become a source of financial strain for many, especially in underserved areas. Shettima urged the CBN and banks to take immediate regulatory action to ensure that PoS charges are fair, transparent, and reasonable.
In addition to addressing PoS charges, Shettima called on the banking sector to increase support for Micro, Small, and Medium Enterprises (MSMEs), which play a vital role in Nigeria’s economic development. He encouraged banks to enhance their financing of these businesses, which are crucial to reducing the nation’s dependency on oil and fostering broader economic diversification.
Shettima also acknowledged the challenging but necessary reforms being pursued by the current administration, including the unification of the Naira exchange rate, the removal of fuel subsidies, and ongoing tax reforms. While these changes have caused difficulties, he pointed out the early signs of progress, such as increased non-oil exports and a trade surplus in recent quarters, encouraging Nigerians to be patient as the economy stabilizes.
The Governor of the CBN, Olayemi Cardoso, also addressed the retreat, emphasizing the need for collaboration between the public and private sectors to overcome Nigeria’s economic challenges. He noted the importance of innovation and commitment in reshaping the nation’s future, stressing that while progress has been made, a long road lies ahead in ensuring sustainable development.
