By Ed Malik, A | ed@ddnewsonline.com | posted november 10th, 2024
Nigeria’s Vice-President, Sen. Kashim Shettima has expressed concerns and urged the Nigerian Deposit Money Banks (DMBs) to tackle the issue of exploitation of Nigerians at the micro-economic level where PoS operators are now charging arbitrarily for cash, especially with the yuletide approaching.
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Shettima made the call on Friday in Abuja, at the 2024 Bankers ‘Committee Retreat, highlighting that the scarcity of cash is constituting an impediment to financial inclusion, noting that the unwholesome practices by some Point of Sale (PoS) agents are impeding the availability of cash, a situation he decried.
He said, “We would like 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 about high and arbitrary charges and exploitation by rogue agents, which we are sure you will be able to tackle with concerted efforts,” he said.
The Vice president who was represented by the Special Adviser on Economic Affairs in his office, Tope Fasua, urged the banks to ensure seamless availability of Naira notes to the banking public.
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According to him, “Nigerians complain bitterly that they are unable to access even minimal cash when most needed,” he said.
While advocating for more initiatives towards the financing of MSMEs, he urged bankers’ committee to continue to support the efforts of the Federal Government in the area of consumer credit culture.
The Vice president applauded the expansion of Nigerian banking brands and dominance in the West African region and beyond, noting that it aligns with the concept of new capability development as propounded by Prof. Ricardo Haussman of the Harvard Kennedy School.
“It suggested that a country should try using technology to export capabilities that it sees as a comparative advantage.
“Banking is one sector we have excelled at over the years. It is, therefore, a valid strategy for you to consolidate upon, as you continue to excel.
“The recent opening of Nigerian bank branches in France is a good testimony in this direction,” he said.
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The Vice President further urged financial stakeholders to remain at the forefront of risk management and develop adaptive responses to the rapidly evolving banking and finance sector. Speaking on the transformation driven by fintechs, neobanks, agency banks, and similar innovations, Shettima highlighted their pivotal role in enhancing financial inclusion.
In a related development, the Central Bank of Nigeria (CBN) recently intensified measures to address cash scarcity issues that have plagued the system. This follows widespread customer complaints about difficulties withdrawing money from ATMs, which led many to rely on Point-of-Sale (PoS) operators charging exorbitant fees.
As part of its intervention, the CBN has launched dedicated hotlines and email channels for the public to report problems with accessing cash from deposit money banks (DMBs) and ATMs. The apex bank also issued a circular mandating banks to ensure efficient cash disbursement over-the-counter (OTC) and through ATMs.
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In its oversight role, the CBN reiterated its commitment to strict compliance enforcement, underlining that these measures are part of broader efforts to enhance currency availability and improve public access to cash across Nigeria.