PoS transactions boom to N223.27tr, up 102% YoY
By Jeph Ajobaju, Chief Copy Editor
Point of Sale (PoS) operators made N223.27 trillion transactions in 2024, up 102 per cent year-on-year (YoY) from N110.35 trillion in 2023, according to the latest data from the Central Bank of Nigeria (CBN).
CBN quarterly statistical bulletin shows continued migration from banks’ Automated Teller Machines (ATMs) to PoS platforms for financial transactions across the country.
Total PoS transactions value rose from 9.85 billion in 2023 to 13.08 billion in 2024, a 32.7 per cent jump YoY.
The value of ATM withdrawals in 2024 was N29.12 trillion, a slight increase from N28.21 trillion in 2023, further confirming a slowdown in ATM cash withdrawals relative to digital payments.
Monthly data from the CBN shows a consistent rise in PoS transactions value versus ATM withdrawals throughout 2024 as follows:
January 2024
N11.50 trillion (PoS), N5.28 trillion (2023).
N3.24 trillion (ATM), N2.15 trillion (2023).
February 2024
N12.46 trillion (PoS), up 69 per cent on N7.38 trillion (2023).
N1.72 (ATM), down from N1.77 trillion (2023).
March 2024
N14.73 trillion (PoS), N10.62 trillion (2023).
N1.60 trillion (ATM), N2.16 trillion (2023).
April 2024
N13.74 trillion (PoS), N8.55 trillion (2023).
N1.81 trillion (ATM), N2.41 trillion (2023).
May 2024
N13.91 trillion (PoS), N8.30 trillion (2023).
N2.49 trillion (ATM), N2.62 trillion (2023).
June 2024
N19.57 trillion (PoS), N8.31 trillion (2023).
N2.45 trillion (ATM), unchanged from 2023.
July 2024
N15.24 trillion (PoS), 83 per cent rise on 2023.
N3.21 trillion (ATM), N2.24 trillion (2023).
August 2024
N18.90 trillion (PoS), N9.10 trillion (2023).
N2.21 trillion (PoS), N2.14 trillion (2023).
September 2024
N19.69 trillion (PoS), N9.40 trillion (2023).
N2.30 trillion (ATM), N1.99 trillion (2023).
October 2024
N22.27 trillion (PoS), N10.60 trillion (2023).
N1.93 trillion (ATM), N2.54 trillion (2023).
November 2024
N29.42 trillion (PoS), N11.28 trillion (2023).
N3.35 trillion (ATM).
December 2024
N31.84 trillion (PoS), N13.20 trillion (2023).
N3.91 trillion (ATM), N2.43 trillion (2023).
Pert The PUNCH, the data reflects the continued expansion of PoS terminals, which are increasingly accessible across urban and rural communities through agency banking networks.
ATM usage remains relevant but the figures suggest a diminishing reliance on physical cash withdrawals from them for everyday transactions.
The increasing preference for PoS reflects a shift towards convenience, speed, and broader financial access. However, the rapid growth also raises the issues of fraud and transaction charges.
The surge in POS transactions occurred despite arbitrary increases in charges around the end of the year. In December 2024, POS agents hiked charges about 100 per cent, collecting up to N200 per N5,000 withdrawal.
Many Nigerians were at the mercy of PoS operators, as most banks’ ATMs were empty.
And there was no reprieve over the counter in banks as most turned back their customers for lack of cash. In rare cases where customers were able to get cash, they were limited to N10,000 or N20,00 withdrawals.
This happened despite a warning to the banks by the CBN that any bank found not dispensing cash via ATMs would be sanctioned.
The CBN earlier sanctioned nine Deposit Money Banks with fines totalling N1.35 billion for failing to ensure cash availability via ATMs during the festive season.
Each defaulting bank was fined N150 million following spot checks that revealed non-compliance with CBN cash distribution guidelines.
The banks were Fidelity, First Bank, Keystone, Union Globus, Providus, Zenith, United Bank for Africa, and Sterling.
PoS operators attributed the increase in charges to severe cash scarcity caused by banks rationing withdrawals and the implementation of the Electronic Money Transfer Levy (EMTL) of N50 by the Federal Inland Revenue Services (FIRS) on any electronic inflow of N10,000 and above.
The stamp duty or electronic money transfer levy is a single, one-off charge of N50 on electronic receipt or transfer of money deposited in any commercial bank or financial institution on any type of account on N10,000 and above.
On December 1, 2024, the government began enforcing the policy across fintech platforms such as OPay, Moniepoint, Kuda, and others.
Fintech operators have about 70 per cent of the PoS agent market.
Tackling electronic financial transactions fraud
With the surge in PoS transactions have risen cases of fraud through this payment system, among other concerns.
The prevalence of fraud and forgery in Nigeria’s payment system showed a significant shift in the first quarter of 2024 (Q1 2024), with PoS transactions experiencing the highest increase in fraudulent activities.
The Fraud and Forgeries Report in Nigerian Banks for Q1 2024 by FITC shows that PoS fraud cases surged 31.12 per cent in the quarter.
In Q4 2023, there were 2,683 reported cases of fraud associated with PoS terminals, which escalated to 3,518 by Q1 2024.
PoS fraud cases made up 30.67 per cent of total fraud cases (11,472) in Q1 2024. Also, fraud cases involving computers, mobile devices, and PoS systems accounted for the majority of fraudulent activities in Q1 2024.
This led the CBN to introduce a daily cash-out transaction limit of N100,000 per individual customer for PoS agents, as part of new measures to advance cashless policy and combat fraud.
The CBN restricted PoS agents to a cumulative cash-out limit of N1.2 million per day, and customers’ cash withdrawal limit of N500,000 per week.
To ensure accountability, the CBN has mandated that all agency banking transactions be conducted exclusively through float accounts maintained with principal institutions.
Also, all agent banking terminals must be connected to the Payments Terminal Service Aggregator; and daily transaction reports, including withdrawal limits and float account balances, must be electronically submitted to the Nigerian Inter-Bank Settlement System (NIBSS) using a reporting template provided by the CBN.
The CBN circular stressed that principals of agent banking operations must monitor accounts linked to agents’ Bank Verification Numbers (BVNs) to detect unauthorised activities outside designated float accounts.
It reiterated that principals would be held fully responsible for the actions and omissions of their agents in relation to banking services.
To ensure compliance, the CBN announced plans to conduct periodic oversight and impromptu backend configuration checks.
Any breach of the directive would attract penalties, including monetary fines and administrative sanctions, the circular warned.
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