There’s a significant shift in Nigeria’s cash withdrawal landscape. With ATMs across the country increasingly running out of cash—sometimes up to 30% of machines are non-functional at any given time—Point of Sale (PoS) operators have stepped into the breach.
What was once a secondary method of payment has now become a primary means for accessing cash, particularly in underserved rural areas where traditional banking services are sparse.” As of mid-2023, the number of PoS terminals in Nigeria has surged to over 1.1 million, up from around 300,000 before the COVID-19 pandemic. This explosion in PoS terminals has transformed them into essential cash dispensers, with some regions now relying on them for over 80% of their cash withdrawals.
However, this convenience comes at a cost, with transaction fees from PoS operators often reaching as high as 10%, a significant increase from traditional ATM fees On this episode of Consumers’ Talk, we took to the streets to hear directly from the consumers who are navigating this cash crunch. Getting their perspectives on the rising fees, the accessibility of PoS services compared to dwindling ATMs, and how this shift is affecting their daily lives.
