Cash Struggles: Nigerians Debate the Role of POS Agents in Everyday Banking

When was the last time you walked up to an ATM, put in your card, and actually got cash? Been a while, right? Maybe months ago—or even years? Chances are you don’t even bother with the ATM anymore. These days, when you need cash, you probably head straight to the nearest POS agent in your neighborhood.

Across Nigeria, especially in urban areas, POS agents are everywhere. Just look around, and you’ll spot someone with one of those small, mostly blue, POS machines, ready to help you out—for a fee. Need N5,000? That’ll be around N100. Need N10,000? You’ll pay N200. So now, we’re paying just to get our own money—the money we deposited in our bank accounts, money we used to be able to withdraw from ATMs at no extra cost.

It makes you wonder: when did paying to access your own money become normal? Good question. In 2013, the Central Bank of Nigeria (CBN) introduced agent banking and POS systems as part of a push to increase financial inclusion. The idea was to reduce the need to carry around large amounts of cash and to make transactions safer and more convenient.

Globally, POS systems are a common way for businesses to accept payments. Customers can easily pay with their phones, tablets, or any device connected to the internet. It simplifies payments and helps retailers manage inventory and improve customer service. This was also the initial goal in Nigeria.

But now, what’s the reality? ATMs sit unused, often out of cash, gathering dust, while nearby POS operators offer the only real option for withdrawing money. Going to the bank for cash withdrawals has become almost unheard of, and using ATMs is no longer a dependable choice.

Shouldn’t getting your money be as easy as putting it in the bank? And shouldn’t that access be free? That’s the argument many Nigerians are making as they call for a ban on POS charges. Others, though, feel POS services offer employment opportunities for operators and that banning them would take away a vital source of income. Some say these POS jobs only exist because of gaps in the government’s ability to create proper employment, and they feel Nigeria’s financial system has failed people. Even back when ATMs were more reliable, they often involved long lines, frustrating waits, and occasional breakdowns—making withdrawals an ordeal.

Opinions vary, but one thing is clear: many Nigerians are frustrated with the POS charges and the fact that using them has become more necessity than option.

Check out some of the reactions from Nigerians on the state of POS services and cash accessibilty:

I just remembered those days of going from ATM to ATM just to find one that was working, sometimes you might not even find any, or is it the fear of your card being swallowed?

POS please > https://t.co/0Ne0bH3Z3q

— Tomi (@tomiwebstr) November 12, 2024

I went to three banks on the same street, and 2 out of the 3 were not dispensing cash, and the third one had a 2,000 naira limit.

But right in front of these banks were POS operators selling naira.

What sort of criminal enterprise is this?

Why are we being forced to buy naira

— Unwanabasi (@BabyWhale___) November 12, 2024

The only reason why POS should exist as a service is if the bank is paying the POS agents. Getting money should be as easy as depositing it. If the bank fails to money available at designated ATMs, whatever cost of accessing the money should not be passed to the customer.

— Temitayo O. Esq (@Tbabz__) November 12, 2024

There’s no bank in my area. It’ll cost me N5,000 to visit the nearest bank/ATM.

I’d rather pay the N200 POS fee please.

Maybe we can fight for regulation, but there aren’t enough ATMs to effectively serve the masses so a downfall would be bad. https://t.co/TW68uBZgxg

— Dada Designer (@stephanieorkuma) November 13, 2024

Paying 200 to withdraw 5000 sounds inexpensive, but it’s a 4% fee. That’s exorbitant.

If POS are a better option for most people, then ATM liberalization shouldn’t affect them as people will still choose the most convenient option for them. Why can’t they coexist?

— Nues – Al Gaib (@NuesDaily) November 12, 2024

Nobody is trying to take your POS agent away if it works for you. We are saying that it doesn’t work for everyone, and normal banking and merchant services should prevail, especially in urban areas. Why will airport parking not work and we depend on an agent sitting at the gate?

— Osaretin Victor Asemota (@asemota) November 13, 2024

There’s no way you can convince me they shouldn’t abolish POS. Last year December at Landmark I withdrew 3k with 1k charges and today 20k with N600 charges. If you tell me about job provision or accessibility I’ll nod your stinking lips.

— Hamilton (@hamiltonawah) November 13, 2024

“Buying your own money” is a rather interesting way to frame the POS conversation.

It’s a compelling narrative but I’m afraid it’s wrong.

It’s wrong because it’s not your money. It’s the POS merchant’s money until they give it to you in exchange for value.

— H. (@senor_hachi) November 12, 2024

I would rather pay N1000 to a POS handler to withdraw N10k, than to stand on a queue for 1hr+ behind an ATM machine that is likely to stop working when my turn to use it reaches.

Let the CBN and the banks fix themselves before destroying POS businesses.

— Benkingsley Nwashara (@Benking443) November 13, 2024

The problem about this POS thing is that those making ridiculous money from it will never let go. They will defend it till eternity. It’s okay to use POS to pay at stores, but fuel, pay for items I am buying with you. What is not okay if me wanting to withdraw my own money in an…

— Ridwan Oke (@Ridwanullahii) November 12, 2024

Anti POS folks should know that life does not start and end in Lagos. There are thousands of communities in Nigeria that does not have a Bank nor ATM.Some will have to travel to major cities to withdraw money even in this same Lagos.The POS you hate has been their saving grace!

— Tosin.X (@Dontee___) November 12, 2024

There is nothing sensible about buying naira with Naira.

The CBN needs to mandate banks to rejig their ATMs so people can have choices.

This POS thing is why I’d always say that Nigeria is a place policy comes to die.

— Osi (@Osi_Suave) November 13, 2024

PoS agents should either be regulated or complied to reduce their tariffs, the cost of local transactions in are too expensive

— Olumide Adesina (@olumidecapital) November 13, 2024