PoS Transactions Decline as Nigerians Shun it Over Charges

• PoS Transactions Decline as Nigerians Shun it Over Charges

The Point of Sale terminals experienced a decline of 4.83 billion from 46.13 billion transactions performed in December 2019 to 41.3 billion in January 2020.

According to the data from the Nigerian Interbank Settlement System (NIBSS), the value of the decline stood at N60 billion. This decline started after the Central Bank of Nigeria introduced N50 stamp duty on PoS transactions in 2019.

However, despite the apex bank instructing merchants to stop the collection of the N50 stamp duty fee, most merchants continue to collect the illegal fee.

The illegal charge by merchants outlets, from petrol stations, supermarkets and other business owners, has led to a decline of N60 billion from N373 billion recorded in December 2019 to N313 billion in January 2020.

Uju Ogubunka, the President of the Bank Customers Association of Nigeria, condemned the action of merchants in spite of the central bank’s directive to stop.

Ogubunka said: “I expect the CBN to move beyond its directive that bank customers reject the fee and fight for customers. Another option is for the customers to carry cash and avoid the fee where the risks are minimal.”

Musa Jimoh, the Director, Payment System Management Department, CBN, urged Nigerians to reject the N50 PoS fee.

He explained that the stamp duty fee is regulated by an Act, however, misinterpreted today.

Jimoh stated: “Our circular that talks about merchants paying stamp duty according to the law does not say that the stamp duty should be paid by the consumer. That’s actually a misrepresentation of the CBN’s directive.

“What our directive says is that merchants should pay all necessary charges as regulated by the government agency, including stamp duty.

“When there is an electronic transaction to an account other than savings account and the transaction amount is more than N1,000, you have to pay stamp duty.”