High rate of failed transactions worsens cash scarcity pains

By Tumininu Ojelabi Hassan

Bank customers have deplored the rising level of failed transactions, which has worsened their suffering, amidst the cash crunch experienced nationwide. Since the scarcity of cash struck, Nigerians have resorted to paying for goods and services through electronic transactions, which have been ineffective.

Our correspondent approached bank customers in Lagos to share their experiences during the cash crisis. Unfortunately, these people expressed their frustrations concerning the high level of failed transactions recorded within the past three weeks and now.

Adewunmi Esther, a 28 year old lawyer, who resides in Lagos narrated her ordeal. “I have been unhappy because of all the transactions I have done only a few were successful. Five different transactions were unsuccessful. This happened at different places, where I tried to pay for the products I bought through POS machine, the transactions were declined but my account was debited by GT bank and they haven’t refunded my money.

“I have gone to the bank twice, I was told the transactions were successful. These failed transactions amounted to N27,500. I have been patient for three weeks, expecting them to resolve this issue but they aren’t doing anything about it. Honestly, I’m fed up. I haven’t been feeding well because my money is stuck somewhere,” she lamented.

At a foodstuff store in Ketu market, a woman created a scene due to a failed transaction. According to the 42 year old woman, who identified herself as Oyelami Iyabo, “I reside in Ogun state but my children school in Lagos. They stay in the boarding house, as you can see I went to pick them up from school for their midterm break.
“I decided to stop by to get some foodstuff in the market, I told this man (the trader) that I didn’t have cash but I will do a transfer since no POS machine was available. He agreed, then I transferred N2500 to the Access bank account I was given, my account has been debited but he’s insisting he hasn’t received the payment.
“I have been waiting for 45 minutes, he hasn’t received the money still. The bone of contention is that I need to leave here because of my children, they haven’t eaten, I don’t even stay in Lagos and this man is insisting he has to receive the payment before I leave. This scarcity of cash has caused so much embarrassment for me,” she said angrily.

Chinedu Njoku, a 51 year old businessman and a Lagos resident expressed his disappointment towards the failed transactions, which is as a result of the cash crisis.

“This cash crisis has affected my business badly. We don’t have cash and we can’t do e-transactions seamlessly. It’s either the customer’s account is debited and I don’t get credited or the transaction fails outrightly. In some cases, the bank app doesn’t even open. It’s tiring. Now that the election is over, I hope cash will be available,” he said.

According to an Access bank staff, who pleaded for anonymity, “The issue of failed transactions is due to network issue. The number of e-transactions done by customers on a daily basis have tripled due to the unavailability of cash. Our IT team are working tirelessly to resolve this issue. This is a tough period for financial institutions, with time these issues will be resolved and normalcy will be restored,” he stated.

Amidst this cash crisis, based on BH findings and conversations with bank customers, OPAY Digital Services Limited stood out for its commendable service during this period. A lot of bank customers currently use their OPAY accounts for e-transactions.

Ismail Olashile, a 38 year old tricycle rider explained how flawless e-transactions with his OPAY account has helped his business grow.
“I started using my OPAY account recently due to cash scarcity. I have not had any issue with it since I started using it. While others are complaining about failed transactions, I haven’t experienced it. When customers send money to me, I receive it almost immediately,” he said joyfully.

Also, a twitter user @Elkrosmediahub has applauded OPAY Digital services limited for their outstanding service during this cash shortage phase.
“I have done more than six transfers to OPay accounts today. Even my employees refused taking pay in their normal accounts that I have saved as ‘beneficiaries’, they all insisted on Opay, claiming transactions there have been seamless, without a single delay in crediting.
“In addition, I couldn’t help but notice that their account numbers were the last 10 digits of their cell phone numbers. That’s actually an upgrade for people like me that have never tried memorizing my account number. Just remove the first 0 in their phone digits,” he tweeted.

Ahmed Olawale, a 29 year old POS merchant while discussing with our correspondent revealed how failed transactions has affected his business.
“Cash scarcity is affecting my business badly and failed transactions have worsened the situation. It has resulted to disagreements between my customers and I. I have had incidents where customers transfer money, their accounts will be debited and my account won’t be credited.

“Also, customers would use their ATM for transactions, these transactions will be declined and their accounts will be debited. I have visited my bank, which is First bank, I was told the fault is from the customers’ banks not from them. Honestly, this issue is frustrating,” he said.

Bank customers have conveyed their dissatisfaction over failed transactions experienced since the genesis of cash crisis through their social media accounts.

A twitter user, @Itz_Oshoke sent a warning tweet to his bank, Zenith bank. “Dear @ZenithBank, Kindly reverse all the monies you’ve deducted from my account for failed transactions before I go to one of your branches and show you guys a little madness. Best Regard, Oshoke,” he tweeted.

Another twitter user, @jeremiah_starz posted on his twitter page, “@gtbank_help I keep getting debits from failed transactions without reversals, I need the money back urgently,” he tweeted.

@thereal_silver lodged her complaint via instagram, “Lodge Complaint. I did a transfer yesterday from my UBA Account to Wema bank around 10am and I was debited. The receiver hasn’t gotten the money and it has still not been reversed. It is more than 24 hours now, no reversal. I need my money back,” she commented.

@gloszy_arts aired her grievances through her instagram account to UBA, “Internet banking isn’t working, mobile app transfer isn’t working, customer care line there’s no response, replying DMs takes forever and the banks are not even open. You should have at least sent a memo that your bank wouldn’t be open instead of leaving people stranded with no help. Reply my DM,” she commented.

According to new data from the Nigeria Inter-Bank Settlement System (NIBSS), cashless transactions in Nigeria rose by 45.41 percent year-over-year to N39.58tn in January 2023. The NIBSS monitors cashless transactions through the Nigeria Instant Payment System and Point of Sales terminals. Total NIP transactions for the period rose by 45.52 percent from N26.65tn as of January 2022 to N38.77tn in January 2023.

In addition, The usage of electronic channels for transactions grew by 45.50 percent, that is, from 438.48 million times to 638 million times in January 2023. According to the NIBSS, there were 955,234 deployed POS terminals in the country as of January 2022. This figures are expected to jump in February, when the scarcity actually started.

According to the Central Bank of Nigeria (CBN), the use of cash payments will reduce in the country by 2025. In its Payments Vision 2025 document, the apex bank explained that by 2025, the country will have a cashless and effective electronic payment system infrastructure to facilitate all the sectors of the economy.

“The use of cash will be naturally slow with the ‘mobile first generation’, which will be economically active by 2025, hence one of the focuses of the PSV 2025 is enhancing the cashless policy of the CBN,” the document stated.

“As we implement the PSV 2025 agenda, the CBN will continue to ensure that the Nigerian payments system is widely utilised domestically, supports government’s financial inclusion objectives and meets international standards, while contributing to overall national economic growth and development of Nigeria,” the document added.

Hopefully, the implementation of the PSV 2025 agenda will be effectual in curbing the level of failed transactions. Also, payments via e-transactions will improve and be efficacious.