What happens when a business’ profits are under pressure by a government policy? The customers ultimately pay the price.

This best describes the reaction of POS operators to a new policy by the Central Bank of Nigeria (CBN).

In recent months, these operators have become a crucial source of cash as Nigeria grapples with a prolonged cash scarcity that has left people struggling to get cash at banks and ATMs. While POS agents are experiencing increased patronage, they are also facing scrutiny from regulators over concerns that their operations may be contributing to Nigeria’s continued reliance on cash.

On Tuesday, the CBN set a daily limit of ₦1.2 million ($771) per POS agent and capped withdrawals at ₦100,000 ($64) per customer. While the directive is aimed at regulating the agent banking business and curbing fraud, it comes with a darker side for POS operators who fear the new limits will significantly impact their earnings.

Limited cash disbursement means lower patronage for these businesses. To stay afloat, POS operators will pass on the cost to the customers by increasing their withdrawal fees.

One POS agent in Lagos told TechCabal that he would charge ₦6,000 ($4) or more for a withdrawal of ₦100,000, up from the previous ₦4,000 ($3) fee. 

Beyond raising fees, other operators believe they can adapt and innovate around the new rules. One such way is by securing more terminals to spread the demand. 

Ultimately this points to one thing: while POS operators remain a critical part of Nigeria’s financial inclusion drive, they won’t be spared from the regulator’s increased scrutiny. 

While rumours of Netflix leaving Nigeria just subsided, the video streaming platform is now faced with a fine from the Dutch Government. 

The Dutch Data Protection Authority (DPA) fined Netflix €4.75 million ($4.98 million) on December 18 for not adequately informing customers about its use of their data between 2018 and 2020.

“Customers did not receive sufficient information when they asked Netflix which data the company collects about them. These are violations of the General Data Protection Regulation (GDPR),” the DPA said in a statement.

Netflix objected to the fine, noting it had since updated its privacy statement and enhanced its data transparency since the start of the investigation in 2019. 

While the authorities acknowledged that Netflix had since updated its privacy statement, it noted that the investigation exposed notable shortcomings during the relevant time frame.

Further findings from the investigation which took place over five years showed that Netflix failed to clearly disclose which personal data were shared with third parties and why. The company failed to provide clear information on how it protects user data during international transfers outside the EU.

When customers requested details about their collected data, Netflix’s responses were often unclear and lacking in detail. The company also failed to provide clear guidance on its retention periods for user data. 

“Since this investigation began over five years ago, we have cooperated with the Dutch Data Protection Authority and proactively evolved our privacy information to provide even greater clarity to our members. We have objected to this decision,” a Netflix spokesperson told Reuters.