Interest charge

Representatives accuse CBN of strict penalties on point-of-sale operations

The House of Representatives has called on the Central Bank of Nigeria (CBN) to, in the public interest, introduce strict regulations and guidelines including sanctions on Point of Sale (PoS) business operations in Nigeria.

The resolution follows a motion raised during yesterday’s plenary session by Jimoh Olajide, a member representing the Lagos Mainland Federal Constituency.

Olajide explaining the motion, noted that the point of sale (PoS) system is where customers make payments for products or services rendered, but due to many factors, the point of sale (PoS) is become a lucrative business in Nigeria and has provided jobs for millions of unemployed Nigerians who see it as a good alternative to white collar jobs in the country.

The legislator noted that while many Nigerians earn legal money through this lucrative business, some use it for fraudulent acts to create fake credit alerts to defraud innocent customers, hence the need for government intervention.

He expressed concern that Point of Sale (PoS) merchants in Nigeria are not only licensed by commercial banks and other private companies who currently deal in giving Point of Sale (POS) for commercial purposes, which makes the business more porous and ambiguous.

Olajide expressed concern that currently, no financial regulator in Nigeria can accurately determine the total number of Point of Sale (PoS) machines and their operators in the country.

According to him, on December 21, 2021, the Punch newspaper reported an allegation by the residents of

Aniocha South Local Government Area of ​​Delta State alleging that Union Bank and First Bank staff at Aniocha branch deliberately sabotaged the bank’s Automated Teller Machines (ATMs) due to the non-availability of cash, thus leaving customers no choice but to patronize the staff of the bank presumed to be owned. Points of sale are centered around banks.