Central bank of nigeria new policy on pos transaction fee
The Central Bank of Nigeria (CBN) has introduced a new policy on Point of Sale (POS) transaction fees in Nigeria. Here are the key details:
Effective Date: The new policy took effect from January 1, 2022.
Transaction Fee Structure: The CBN has introduced a tiered transaction fee structure for POS transactions in Nigeria. The fees are as follows:
- For transactions up to N20,000: 0.5% of the transaction value (minimum N50, maximum N200)
- For transactions above N20,000 and up to N50,000: 1.0% of the transaction value (minimum N200, maximum N500)
- For transactions above N50,000 and up to N100,000: 1.5% of the transaction value (minimum N500, maximum N1,500)
- For transactions above N100,000: 2.0% of the transaction value (minimum N1,500, maximum N2,000)
Exemptions: The following transactions are exempt from the new POS transaction fee:
- Transactions made using the CBN's eNaira digital currency
- Transactions made by government agencies and institutions
- Transactions made by financial institutions for their customers
- Transactions made by merchants for their employees
Purpose of the Policy: The CBN introduced the new policy to promote financial inclusion, reduce the cost of transactions, and increase the adoption of digital payments in Nigeria.
Impact on Merchants: The new policy is expected to increase the cost of doing business for merchants who rely heavily on POS transactions. However, the CBN has encouraged merchants to explore alternative payment options, such as mobile money and e-wallets, to reduce their transaction costs.
Impact on Consumers: The new policy is expected to increase the cost of transactions for consumers who use POS to make payments. However, the CBN has encouraged consumers to adopt digital payment options, such as mobile money and e-wallets, to reduce their transaction costs.
Implementation: The new policy is being implemented by the CBN in collaboration with the Nigerian Interbank Settlement System (NIBSS) and other stakeholders in the financial industry.
It's worth noting that the CBN has given merchants and financial institutions a grace period of six months to adjust to the new policy. During this period, the CBN will monitor the impact of the policy and make adjustments as necessary.