Empty ATMs: Customers Allege Banks Collude With POS Vendors To Extort Nigerians
A growing number of Automated Teller Machines (ATMs) that are “temporarily unable to dispense cash” have led to accusations from the banking public that Deposit Money Banks (DMBs) are conspiring with operators of Point of Sales (PoS) terminals to steal Nigerians' hard-earned money through purposeful trading on the naira.
The Central Bank of Nigeria (CBN) is therefore being called upon to look into the DMBs by the majority of bank customers who spoke with the Nigerian Tribune and others who vented their resentment on social media. Some argue that selling naira to Nigerians just because the banks claim there is no cash is also naira abuse.
POS agents are visible in every corner of Nigeria, from Lagos to Abuja, Port Harcourt to Kano, Enugu to Jos, assisting regular people with their transactions.
The banking public has been advocating for the service's termination owing to abuse and extortion, though, as many ATMs are barely ever cash-loaded. Instead, all transactions would have to go through the banks or other electronic channels.
Another instance of Naira being abused in this country is when a client of one of the newer “POS operators” sells Cash for a fee without a banking license. The ATM will be emptied around 7 a.m. and late at night. They'll set a shop directly in front of the cash machine and sell you cash! Nigeria is not
“POS operators have more than 10 Banks accounts with different ATM cards. They only use one or two for business and the rest for ATM withdrawals.”
“I feel commercial banks in Nigeria intentionally refuse to stock their ATMs with cash so that people will go to pos operators. They collude with these people. How can (withheld) bank not have cash in these ATMs? It's so funny. Close the ATMs if you don't want to stock it.”
Another instance of Naira being abused in this country is when a client of one of the newer, “POS operators selling Cash for a fee without a banking licence is another abuse of Naira in this country. They will drain the ATM late at night and 7am in the morning. They will situate right in front of the ATM and sell you cash! Nigeria is not a real place.”
Analysts surmise that in actuality, point-of-sale operators purchase local cash from banks rather than obtaining it from ATMs.
A debit card can only withdraw N150,000 per day, which is less than what the typical point-of-sale operator processes on a daily basis, making it seem like a racket in Nigeria.
As said by Iroh Uzoigwe, “POS operators have more than 10 Banks accounts with different ATM cards. They only use one or two for business and the rest for ATM withdrawals.”
“I feel commercial banks in Nigeria intentionally refuse to stock their ATMs with cash so that people will go to pos operators. They collude with these people. How can (withheld) bank not have cash in these ATMs? It's so funny. Close the ATMs if you don't want to stock it.”
Eniola Daniel noted on his X (formerly Twitter) account that it is concerning that the CBN and Nigerian banks have given in to POS operators.
“No money in ATM machines but POS operators around the banks have cash and no one is talking. CBN is just not bothering, we are losing all sense of normalcy in NIGERIA. What is happening @cenbank?,” he lamented.
Egwu K. U (@ukakingsley5) reported that many POS agents had the new notes. Another X user claimed to have received fresh notes from the same woman who works in the POS and black market fuel businesses.
“I was asked to pay an N800 charge for a withdrawal of N8,000 Naira. I politely declined and accepted old notes. However, the lady confirmed she bought the same notes from the bank whose POS terminals she uses,” Egwu wrote.
Christopher added on X, saying, “I paid N40,000 charge to a POS stand to withdraw N2million. If Nigerian banks claim they don't have cash to give citizens, how do these POS guys get theirs?? Even the most basic of things in this country is a big problem. Tufiakwa!”
In the meantime, POS operators have been cautioned by Delta State Police Public Relations Officer Mr. Bright Edafe not to release cash up to N2,500,000, citing the risk involved, particularly if armed individuals who may be kidnappers are accompanying them.
According to research, the majority of the ATMs in Lagos' mainland are often empty five days a week due to malfunctioning, network issues, or cash shortages. According to Inlaks data, there are over 22,600 ATM outlets across the nation, and many bank customers have the same experience with them.
Nigeria needs over 60,000 ATMs to accommodate its 106 million adult bank customers and its expanding population of 216 million people, according to Tope Dare, executive director of Inlaks, the nation's largest ATM operator with over 50% of the market.
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