Network hassles force traders to shun e-transfers as delays, failed transactions rampant
By Jeph Ajobaju, Chief Copy Editor
Petty traders in Lagos are feeling Yemi Cardoso’s cash crunch harder as they shun electronic transfers, because of a lack of trust in a system bedecked with frustration of network delay and failure even over small sums.
The new Central Bank of Nigeria (CBN) Governor has said much about the causes of naira scarcity with little traction on practical solution to the problem.
The cash crunch creates additional challenges for businesses, consumers, and Point of Sale (PoS) operators.
Major markets in the length and breadth of the megacity, especially petty traders, are wary of electronic payments because of frequent network delays and failures resulting in loss of sales as well as frustration for both buyers and sellers.
A few samples of the experiences of petty traders and PoS operators are recounted below as collated by the News Agency of Nigeria (NAN) and reported by Leadership.
Fatima Tunji (roadside roasted corn seller)
“I sold corn to a customer for N500, and they said they would transfer the money. The transfer was delayed for a long time and then failed. I lost out on the profit, and the customer couldn’t get their money back. It was very frustrating.”
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Ufuoma Nnaji (roadside roasted yam and plantain seller)
“I only accept cash now, especially since I don’t have an Android [smartphone] phone to check my balance. The best I can do is use a PoS operator, but the customer has to pay the charges.”
Banks hardly pay cash
The survey also found that cash remains scarce in most banks across Lagos. Many banks have several automated teller machines (ATMs) but only one or two dispense cash, if at all.
Even where ATMs give cash, withdrawal limits are also low, with non-account holders limited to N5,000 and account holders limited to N10,000.
Cash scarcity has led to more reliance on PoS operators who also face challenges. They struggle to keep up with demand for cash and that forces them to raise charges.
Hakeem Dosunmu (PoS operator)
“Due to the cash scarcity, many of us have increased our charges. The charge for N5,000 has doubled to N200, and the charge for N10,000 has doubled to N400.”
