Anxiety is rising among Point of Sale (PoS) operators in Abuja, the Federal Capital Territory (FCT), as they grapple with the complexities and uncertainties of a new tax regime. The federal government's recently introduced tax charges, which took effect on January 1, 2026, have sparked widespread concern regarding their impact on transaction fees and overall business operations. Many operators temporarily ceased operations on the policy's commencement date due to confusion.
Abuja PoS Operators Face Revenue Uncertainty with New Tax
Interviews with several finance operators in Abuja revealed significant apprehension about the new charges. Idris Ibrahim, a PoS operator in Dei-Dei community, recounted his hesitation to open for business on the initial day of the tax rollout. Upon resuming, he defensively increased his transaction fees by N100 to mitigate potential losses. For example, a N10,000 withdrawal now incurs a N300 charge, up from the previous N200. This upward adjustment has regrettably resulted in a noticeable loss of customers for him, impacting the general public.
Mandatory CAC Registration and High Transaction Taxes Alarm PoS Sector
Lurwanu Muhammad, a Business Relations Manager for a digital microfinance bank and Secretary of the Dei-Dei chapter of PoS operators, echoed these concerns. He highlighted that a significant number of their members have not yet registered with the Corporate Affairs Commission (CAC), a requirement that has become mandatory for their business. Furthermore, microfinance banks have reportedly issued circulars warning that unregistered operators risk having their accounts suspended. Muhammad also pointed out the alarm caused by a new directive: any transaction exceeding N800,000 will be taxed based on annually realized income. He noted that a single operator in the Dei-Dei livestock market can process up to N50 million daily, leading to immense panic among members given that the highest charge for a N1 million transaction is N3,000. This new tax framework on large transactions is expected to significantly impact their earnings, creating further financial strain for the Nigeria General News economy.
Call for Central Bank and Commercial Bank Intervention
In light of the mounting tension, Muhammad has appealed to the Central Bank of Nigeria (CBN) and commercial banks to provide clearer guidance and enlightenment on the new regulations. This call for clarity is crucial to alleviate the current anxiety and help operators understand and adapt to the updated policies. Ibrahim Buhari, a PoS attendant in Kubwa, also observed a new N50 charge introduced on money transfers, now specifically affecting the sender, which is a reversal of a previous policy where the receiver bore the cost. Their union is actively deliberating on strategies to navigate these new regulations. Boniface Okpe, a Kubwa resident, urged the government to exempt small-scale transactions on microfinance platforms to protect low-income earners from adverse effects. This reflects a broader public desire for equitable implementation of financial policies.