This is a 107% increase from the N15 billion collected in November of the same year, reiterating the impact of the levy following its expansion to fintech platforms.

The levy, which has been in place since 2020, applies to all electronic transfers above N10,000, excluding transfers between personal accounts within the same bank. While initially applied to transactions within banks, the charge was extended to fintech platforms like OPay, PalmPay, and Moniepoint starting December 1, 2024. As a result, customers who previously enjoyed fee-free transfers are now charged N50 on eligible transactions.

With the decision to include fintech platforms in the EMTL collection, the government aims to increase non-oil revenue, and the December 2024 figures show that the initiative is paying off. 

Despite the levy’s extension, fintech companies like OPay have clarified that they do not benefit from the charge, as it is entirely directed to the Federal Government.

For the same period, a total of N1.424 trillion was distributed among Nigeria’s three tiers of government—Federal, State, and Local Governments—based on various revenue sources. 

This figure includes N386.1 billion from statutory revenue, N604.9 billion from Value Added Tax (VAT), N402.7 billion from exchange differences, and the aforementioned N31.2 billion from EMTL. While statutory revenue saw a decrease of over N600 billion from the previous month, VAT revenue increased by N20.6 billion.

The allocation from the EMTL revenue was shared among the levels of government with the Federal Government receiving N4.7 billion, States receiving N15.6 billion, and Local Governments receiving N10.9 billion. Again, 13% of the mineral revenue, totalling N113.5 billion, was shared among the states involved in oil production.

The breakdown of the overall distributable revenue for December 2024 shows that the Federal Government received N451.2 billion, while States and Local Governments were allocated N498.5 billion and N361.8 billion, respectively. 

However, the overall collection for the month also had deductions for various costs, including collection expenses and refunds.

The government is focusing on diversifying its revenue streams, particularly through digital channels though there have been issues about the impact on consumers, particularly those accustomed to free transactions. The government seeks fiscal sustainability and increased revenue from non-oil sectors.

I was taken aback and when I asked why, she simply responded: “I haven’t been out for two days because I was looking for cash. They’ve increased the price.”

But who exactly are “they”? Are ATMs now charging to dispense cash? Do banks charge for cash withdrawals at the counter? 

The Issue

ATMs frequently run out of cash, while PoS agents somehow seem to always have cash available to “sell” at a premium. This has led to complaints about having to pay to access one’s own money.

While PoS services have undoubtedly brought financial inclusion to areas where banks are scarce, there’s a growing issue that some PoS operators might be exploiting the situation, taking advantage of this drive towards financial inclusion and a cashless economy. 

With limited ATM infrastructure and high demand for cash, PoS operators have become indispensable. However, the high fees charged by some agents are projecting unfairness.

Organised Labour Unhappy over “Cashless” ATMs

Analysis: The Numbers Behind the Problem

• PoS Charges: Some agents charge ₦100 for every ₦5,000 withdrawn, meaning an individual would pay ₦3,000 to access ₦150,000 of their own money. Now imagine the charges going up to ₦200.
• PoS Proliferation: As of 2024, there are over 3.04 million registered PoS terminals deployed across the country, compared to just 22,600 ATMs, making PoS a more accessible option for many Nigerians. 
• Cash Usage Trends: Currency held outside the banking system rose to ₦3.79tn in June 2024, up from ₦3.61tn in April.

These reveal the increasing demand and indispensability of the POS, with transactions hitting ₦6.23 trillion between January and July 2024.

The Role of PoS in Financial Inclusion

PoS agents have undeniably bridged a huge gap in Nigeria’s financial system. In remote or underserved areas, they bring banking services closer to the people, reducing the distance many must travel to withdraw cash or make simple transactions.

However, there’s a fine line between providing a necessary service and exploiting customers. With the CBN’s push for a cashless economy, PoS agents are a big part of the vision. But are we moving too quickly without addressing the financial stress this transition places on consumers?

The Cost of Convenience

For many Nigerians, the convenience of PoS agents comes at a high price. Take my recent experience: ₦200 to withdraw ₦5,000. This charge, while seemingly small, is a financial burden for people who rely on these services regularly.

Are these fees reflective of operating costs, or are some operators exploiting the situation? PoS agents argue that sourcing cash often involves added expenses, especially when ATMs run dry. While this is valid, consumers feel the sting of paying to access their own money.

Are PoS Agents Replacing Banks?

The perception that PoS agents are replacing traditional banks is widespread. Nevertheless, financial experts disagree with this notion.

At the TechConnect 4.0, Interswitch MD, Payment Processing and Switching, Akeem Lawal clarified:
“No, fintechs or PoS agents are not taking over banks. What has happened over the last five years is the deepening of financial inclusion. The mission is to reduce the reliance on cash altogether. 

“The focus is on promoting a cashless economy, driving the Central Bank of Nigeria (CBN)’s vision because cashless transactions are more efficient and transparent.

“PoS agents are part of the transition to a cashless future. When you go to an agent for a cash-based transaction, we are encouraging that interaction to shift from physical cash to digital payments.”

Traditional banks remain dominant in large-scale financial transactions and corporate services. PoS agents, on the other hand, cater to smaller, immediate needs, filling a gap left by limited banking infrastructure.

Adaobi Okerekocha, chief innovation officer at Interswitch, explained: “Cash is not the end goal; it’s just a means to access something else. Whether it’s paying for transport, school fees, or bills, the goal is to move those interactions into the digital space.”

To support this vision, companies like Interswitch are developing tools and products to make digital payments seamless for both businesses and individuals. 

“Ultimately, the shift towards a cashless economy requires a change in personal lifestyles and habits. People need to embrace digital payments as an alternative to cash for their daily needs.”

Achieving a fully cashless economy requires significant investment in digital infrastructure and public education.

Balancing Innovation and Accessibility

While PoS agents are essential to financial inclusion, the challenges springing up require a balanced approach:

• Standardising PoS Charges: Regulators must ensure that fees remain fair and transparent, protecting consumers from exploitation.
• Expanding ATM Infrastructure: Banks need to increase ATM availability, especially in high-demand areas.
• Promoting Digital Payments: Incentives for using digital payment platforms can reduce reliance on cash.

Nigerians are already facing enough economic challenges as it stands, so moving towards a cashless economy, the question: “Are we doing enough to ensure that everyone benefits fairly from this financial evolution?” must be looked into.

The answer lies in finding a balance—where innovation meets accessibility, and no one is left behind in the journey towards a digital financial future.