Epileptic Internet Cripples Banks, PoS Services

Bank customers and Point of Sale (POS) operators in Ondo state are now groaning over incessant breakdown and poor internet services in the recent times, causing loss of millions of naira.

The business owners lamented that the epileptic electronic bills payment platforms have been a huge disappointment thereby paralysing online business transactions in the country.

A car parts dealer, Mr Theophilus Agwu lamented that the country seems not to be ready for online business transactions, saying most often; many businesses were put on hold for days due to poor network.

A Point of Sales, PoS, operator in Akure, Jerry Efoma said poor internet services in many banks in Nigeria are inimical to their business.

According to him, many POS operators have resulted to third party agents, such as Opay and Momo as banks take days to resolve network issues.

He however noted that although the use of third party agents for POS business might be risky, but they had no choice since banks could not offer them smooth business operations.

He said the major issue they experience is when customers want to transfer money from one bank to another (interswitch service)

“If commercial banks can be responsive, we won’t be patronising third party agents because this can fold up and we will lose our money.

“But as banks are not ready to resolve network issues on time, we have to keep our businesses running”, he said.

A businesswoman, Mrs Tawakalitu Gbenga told The Hope that she almost lost a business deal worth several millions of naira as a result of network failure.

According to her, business owners found it difficult to make important transactions and which has led to unimaginable losses for many people.

Another POS operator, Foluso Abiodun disclosed that slow internet speed caused by the network failure is really affecting his business.

He said most often, his customers turned back since they could not withdraw cash due of network failures.

Commenting, an Information Technology (IT) expert, Olaniyi Johnson told The Hope that Nigerians are losing a lot of money running to millions as a result of poor internet connectivity since most small scale businesses and to some extent, big ones rely in internet services provided by network operators in the country.

He said poor internet services would greatly reduce not only investment opportunities in the IT sector, as well as other sectors, but also the development and progress of IT infrastructure in Nigeria.

Olaniyi explained that the issue affects the banking, healthcare and other key sectors of the nation.

Reacting, an Economics lecturer at the Ekiti State University, Dr Timothy Awe said, slow internet service or network failure has negative effects on businesses, leading to low productivity and revenue.

“Internet connection failure can be catastrophic to a retailer or professionals, exposing them to the risk of loss of revenue, reduced productivity and customers complaints, but despite the potential consequences, many businesses remain reluctant to tackle the problem head on.”

“Temporary Internet shutdowns or reductions in the speed of web traffic for days have negative impact on the economy.

Also speaking, Ondo State Chairman, Nigeria Association of Small Scale Industrialists, Akintunde Greatseyi said the problem could be adduced to low internet technology in Nigeria.

He said it affects mostly small and medium businesses because they depend on the internet to transact businesses.