Former Anambra State Governor and presidential candidate of the Labour Party (LP), Peter Obi, has expressed deep concern over the financial burden that Point of Sale (POS) operators are placing on low-income earners in Nigeria. According to Obi, the exorbitant charges levied by these POS operators have become a major source of hardship, particularly for the ordinary citizens struggling to make ends meet.
Speaking at a visit to the Archbishop of the Province on the Niger and Bishop of Awka Diocese of the Church of Nigeria Anglican Communion, His Grace Alexander Ibezim, Obi did not mince words in his condemnation of the practice. He emphasized that the high POS charges were a significant obstacle for many Nigerians, particularly women selling small goods in rural and urban areas. “The hardship in Nigeria is too much. How can the ordinary people survive?” Obi remarked, his voice heavy with frustration. “The woman who sells pepper by the roadside has to pay huge charges just to get her own money. How much is her profit margin, and how much will remain after paying these charges?”
Obi’s remarks come at a time when Nigerians have been grappling with skyrocketing living costs, rising inflation, and increasing unemployment rates. In these challenging economic conditions, the fees charged by POS operators, which can range from 5% to as high as 10% of the transaction amount, have become a point of contention. The former governor argued that such practices were pushing Nigerians further into poverty and depriving them of much-needed financial autonomy.
The charges are especially burdensome for small-scale traders and low-income earners who depend on cash transactions for their daily survival. These individuals are often forced to use POS services to withdraw cash, as many rural areas still lack adequate banking infrastructure. The heavy fees they face only serve to diminish the little profit they make. Obi’s statement sheds light on a growing issue that has largely gone unnoticed by policymakers.
“No country is run like this,” Obi said, speaking to reporters who approached him after the meeting with Bishop Ibezim. “Don’t bother to interview me on this; I will write officially to the President on this issue and state all these things clearly,” Obi declared, making it clear that he would take formal steps to address the issue.
The Growing Crisis: Impact on Ordinary Nigerians
The emergence of POS operators as a dominant form of banking service in Nigeria has had both positive and negative consequences. While it has allowed for greater access to cash and financial services in areas with limited banking infrastructure, it has also introduced a new layer of financial exploitation. The growing reliance on POS services has created an unregulated market where operators can charge seemingly arbitrary fees, leaving the most vulnerable members of society to shoulder the burden.
For small traders, these charges are crippling. According to a report from the Nigerian Bureau of Statistics, over 60% of Nigeria’s population lives on less than $2 a day. With such limited resources, many people cannot afford to lose even a small percentage of their earnings to POS fees.
In an interview with a local street vendor, Mercy Nnaji, she explained how the charges affect her business. “I sell vegetables by the roadside, and I rely on POS to receive payments from my customers. Sometimes, I’m charged up to 8% for a small transaction, which takes away a large chunk of my profit. It’s very difficult to keep up,” she shared. Mercy’s story is not an isolated case, as many Nigerians, especially in the informal sector, face the same challenges.
Obi’s comments also highlight a broader issue of financial exclusion in Nigeria, where banking services remain inaccessible to a significant portion of the population, particularly in rural areas. Despite the expansion of mobile banking and fintech solutions, the high costs of these services still limit their effectiveness for low-income Nigerians.
A Call for Government Intervention
Obi’s protest over POS charges underscores a broader concern about the government’s role in regulating financial services. Critics argue that the government has failed to adequately oversee the practices of POS operators and ensure that they operate within reasonable limits. Obi’s call for President Tinubu to intervene and address the situation is a plea for regulatory action to curb the excessive charges and ensure that financial services are accessible and affordable for all Nigerians.
The Labour Party leader’s plan to write to President Tinubu directly is a significant step, as it signals a growing dissatisfaction with the current administration’s handling of economic issues, particularly those affecting the most vulnerable citizens. His intervention could pave the way for stronger regulations on POS operators, as well as reforms aimed at reducing the financial hardship faced by Nigerians.
Political analysts have noted that Obi’s move to address the POS charge issue may also serve as a platform to challenge the current government’s economic policies, which many believe have exacerbated the financial strain on the average Nigerian. Obi, who gained considerable traction during the 2023 presidential election, has positioned himself as a strong critic of policies that, in his view, undermine the welfare of ordinary Nigerians.
Regulatory Gaps and Calls for Reform
The problem of high POS charges is further compounded by the lack of clear regulations governing the operations of POS vendors. Currently, the Central Bank of Nigeria (CBN) regulates the banking sector, but there is little oversight of the POS market, leaving consumers at the mercy of operators who can set their own fees. This gap in regulation has led to a proliferation of charges that many Nigerians find prohibitive.
Industry experts suggest that the CBN needs to implement stricter regulations to protect consumers from exploitative charges. According to a recent report by the Nigerian Financial Inclusion Strategy, about 50% of Nigerians do not have access to traditional banking services. The rise of POS services has been seen as a way to bridge this gap, but the unregulated nature of the market has caused a new set of problems.
Obi’s call for regulation is not only about ensuring fairness but also about safeguarding the economic well-being of the Nigerian populace. “The government has a duty to ensure that its citizens are not exploited by these middlemen. POS operators should be regulated to provide fair and affordable services, especially to the poor,” Obi emphasized.
Peter Obi’s protest against high POS charges is a reflection of the mounting economic pressures on Nigeria’s working-class citizens. His call to President Tinubu to intervene could mark the beginning of much-needed reforms in the financial sector. The current situation is unsustainable, and if left unchecked, it could lead to even greater hardship for the average Nigerian.