BY BABAJIDE KOMOLAFE

The Central Bank of Nigeria, CBN, is on a collision path with the Nigerian Customs Service over tariff on Point of Sale (PoS) terminals imported for the implementation of the cashless policy of the bank.

In a bid to meet the objective of deploying 40,000 PoS in preparation for the January 1st take-off date for the pilot scheme of the cashless policy in Lagos, the 23 banks, acting under a CBN negotiated deal with PoS manufacturers,  had ordered mass importation of the terminals. The importation, is however, being frustrated by a 20 per cent import tariff imposed on the terminals by the Customs.

Speaking yesterday in Lagos at a seminar organised by Committee of E-Banking Industry Heads (CeBIH), Deputy Governor, Operations, CBN, Mr. Tunde Lemo,  said: “We have a hiccup, many of them have arrived and are actually at the ports but the Customs said we should pay 20 per cent, instead of five per cent as tariff.

“We are petitioning them, though we have been advised to pay and clear the PoS so that they don’t frustrate the programme. But we would ensure that we get the money back. We are doing a letter to the Minister of Finance to report the Custom’s people, because I took a letter to the Head of Customs and the response was not good at all”.

This year, CBN imposed limits of N15,000 and N1 million on free cash transactions for individuals and corporate entities respectively, with an administrative charge of N10 per extra N1000 and N100 per extra N100,000 above the limits.

Lemo said the policy, which would commence fully June next year, is part of efforts to transform the nation’s payment system to reduce use of cash and encourage use of electronic payment channels like PoS.

He said, “We have a target of deploying 150,000 PoS by  December 2012 which will be scaled up to 375,000 PoS by end 2015 when we hope to have attained our benchmark PoS penetration of 2,247 PoS per 100,000 adult population as obtainable currently in Brazil.

“Similarly, we are strengthening currently available modes of electronic payments. Further deployment of ATMs is being encouraged, although to drive more cashless transactions as opposed to its traditional cash dispensing functions. ATMs are now equipped to facilitate electronic payments of bills and account to account transfers”.

”Banks are, therefore, poised to deploy additional 75,000 ATMs by December 2015.”

Chairman, CeBIH, Mr. Chuma Ezirim, said: “Recent academic findings based on empirical data, revealed that shifting from paper-based payments to electronic ones could entail yearly savings to a country’s economy of about one percent of its GDP.