Lagos Council Imposes ₦300 Weekly Levy on POS Operators, AAC Demands Suspension
E-ISSN: 2354-4481
By Olaina Fabian
Olorunda Local Council Development Area in Lagos State has imposed a weekly levy of ₦300 on Point-of-Sale (POS) operators operating within the council area, a development that has attracted criticism from the African Action Congress (AAC).
The levy was contained in a notice dated April 22, 2026, signed by the Chairman of Olorunda LCDA, Hon. Ajose Peter Kumayon, and the council Treasurer, Awusinu Olayinka.
According to the details contained in the notice, the charge was initially fixed at ₦1,200 per week before being reduced to ₦300. Collections were reportedly scheduled to begin around May 4, 2026.
The development has raised concerns among POS operators and their customers, particularly in communities where residents rely heavily on POS outlets for cash withdrawals, transfers, deposits and other basic financial transactions.
POS businesses have become an important part of Nigeria's financial ecosystem, especially in areas where access to conventional banking facilities, automated teller machines and other formal banking services remains limited.
The AAC has now called for the immediate suspension of the levy, demanding that the council provide full disclosure of the legal basis upon which the charge was introduced.
The opposition party also demanded an account of all funds collected from POS operators since the commencement of the levy.
In its reaction, the AAC reportedly issued a seven-day ultimatum, insisting that the council should provide clarity on the authority behind the levy and explain how funds generated from the collection are being accounted for.
The party argued that government revenue measures must comply with the law and be administered transparently.
According to the AAC, imposing additional charges on POS operators could have consequences beyond the businesses directly affected. Operators facing higher operating costs may transfer part or all of the additional burden to customers through increased transaction charges.
Such a situation could particularly affect low-income residents and small businesses that depend on POS outlets for everyday financial transactions.
POS operators have increasingly filled gaps in Nigeria's banking infrastructure, providing financial services in communities where bank branches and ATMs are either unavailable or difficult to access.
The expansion of POS services has also created employment opportunities for thousands of Nigerians, while allowing residents in underserved communities to carry out basic banking transactions closer to their homes and businesses.
However, operators face several expenses, including shop rent, electricity, internet connectivity, cash sourcing costs, security expenses and regulatory or local government charges.
The introduction of additional levies therefore remains a sensitive issue, particularly where operators and their customers are already dealing with rising operational costs.
The controversy surrounding the Olorunda levy is consequently centred not only on the ₦300 weekly charge but also on questions of legality, transparency, accountability and the potential impact on residents who depend on POS services.
The AAC's seven-day demand places pressure on the Olorunda LCDA administration to clarify the circumstances surrounding the levy and provide information on the funds already collected.
As of the time of this report, the central issues raised by the AAC remain the legal authority for the levy, the administration's justification for the charge, and the accounting of revenue collected from affected POS operators.
The development is expected to generate further public debate over local government revenue collection and the need to balance internally generated revenue with the economic realities faced by small businesses and residents.
By Olaina Fabian
