Lagos Traders Rejecting Bank Transfers Amid Cash Scarcity: Challenges and Solutions

In the bustling markets of Lagos, traders are grappling with a dual challenge of cash scarcity and network issues, leading many to shun electronic transfers despite ongoing rationing by banks. The News Agency of Nigeria’s survey uncovers a reluctance among traders, particularly those in petty businesses, to embrace digital payments due to frequent network delays and failures. This aversion is causing disruptions in transactions, resulting in lost sales and frustration for both buyers and sellers.

Fatima Tunji, a corn seller, shared her ordeal of a recent failed electronic transfer, recounting the impact on her business. Ufuoma Nnaji, a roasted yam and plantain seller, echoed similar sentiments after falling victim to a fake transfer alert, leading her to accept only cash payments.

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The survey highlights the persistent cash scarcity in Lagos banks, with ATMs dispensing limited amounts and withdrawal restrictions for both account and non-account holders. This scarcity has driven an increased reliance on POS operators, who, in turn, are struggling to meet the rising demand for cash and have consequently raised their service charges.

Hakeem Dosunmu, a POS operator in Ajao Estate, sheds light on the challenges faced by operators, including increased charges due to cash scarcity. With the article aiming to inform and provide insights, it delves into the intricate issues faced by traders, banks, and POS operators in Lagos and explores potential solutions to mitigate these challenges.