Banks deploy 70, 000 PoS terminals in Lagos, says CBN

Hope Moses-Ashike & Ben Uzor Jr

Efforts towards sustaining Nigeria’s transition from cash to electronic-based economy are yielding fruits. As at May 7, 2012, deposit money banks have deployed a total of 70, 000 Point of Sale (PoS) terminals to merchant locations in Lagos. Sanusi Lamido Sanusi, governor, Central Bank of Nigeria (CBN) who made this revelation on Wednesday at the Cash-less Lagos Fair 2012 organised by BusinessWorld in Lagos, said that the intention is to deploy over 150, 000 PoS terminals by the end of the year. Sanusi, who was represented by Olu Adaramewa, deputy director of banking and payments, CBN said Cash-Less  policy was designed to promote financial inclusion, reduce the amount of cash payment and encourage electronic payment.

This, Adaramewa went on was because the cost of cash and associated risk of cash-driven economy to Nigeria’s financial system was high. In fact, estimates show that the direct cost of cash management would reach N192 billion by the end of 2012. In order to encourage alternative means of payment, he noted that banks and acquirers have deployed over 9,000 Automated Teller Machines (ATMs) in and outside of the bank branches, adding these machines have the capability to enable bill payment, funds Transfer, Virtual top-up etc. He also enjoined all Nigerians to support this initiative in order to make the country one of the world 20 economies in year 2020 and by extension, take her rightful place in the comity of nations.

He said the fair afforded the opportunity for CBN to further enlighten the public on the status of the project and clarify grey areas of the implementation. “The policy on withdrawal allows individual customer to make a free cumulative withdrawal of N500, 000 daily across the counters and ATM. Withdrawal above the free limit will attract processing fees of 3 percent for every N1000 above the limit. Corporates are allowed to make free cumulative withdrawal of N3, 000, 000 daily. Withdrawal above the free limit will attract a processing fee of 5 percent for every N1000 above the limit.” As it relates to cash lodgement, he explained that the policy allows individual customer to make a free cumulative lodgment of N500, 000 daily.

“Lodgment above the free limit will attract processing fees of 2 percent for every N1000 above the limit. Corporate customers are allowed to make free cumulative lodgment of N3, 000, 000 daily. Lodgment above the free limit will attract a processing fee of 3 percent for every N1000 above the limit”, he posited. In the same vein, Ade Shonubi, chief executive officer, Nigeria Inter-Bank Settlement System plc (NIBSS), said the market was responding positively to the Cash-Less Lagos Campaign having tasted the convenience and security benefits of e-payments. “A major area of concern in the quest to grow the Nigerian Payment System is achieving effective Publicity and Enlightenment. Besides, electronic payment infrastructures are on ground and are being improved upon by various payment service providers.”

He called on stakeholders in the emerging ecosystem to do more to bring payment services to the doorstep of the consumers of payment services.