It’s Monday, a Public Holiday in Nigeria, which is also a great time for restaurant and bars in Nigeria. Long weekend, higher sales (Monday and Tuesday public holiday). From my experience as a consultant in the industry, weekend sales account for 50 – 70% of total sales. POS (debit card) sales account for up to 30% of sales transactions in restaurants and bars that average N6million monthly. 60% of N6million is N3.6million, and 30% of N3.6million is N1,080,000. What this means is that business owners/investors in this industry will not get “alerts” until Wednesday!So many things can happen during this period. In the last 48hrs I have read reports on how different managers and employees in the hospitality industry (that’s my focus) have diverted funds to their personal accounts by manipulating the bank POS machines. Receipts are provided during end of day reconciliations, giving the impression that total sales (cash and POS) have been accounted for. Some employees use their personal bank POS machines, diverting funds directly to their personal accounts.
We also have the well renowned “Network Issue”. A customer makes a payment using his debit card, he receives a debit alert(SMS message) but an error message prints from the POS machine stating the transaction was not processed. At this point, one is not sure if this transaction was processed or not. The manager walks the “willing” customer to the ATM to withdraw funds to cover the bill. During reconciliation it is discovered the customer was billed “twice”. I can count the number of restaurants and bars that issue refunds (maybe in the event of serious confrontation and threats).
In as much as the use of debit card has significantly enhanced the growth of businesses in Nigeria, this continues to be a serious challenge to small business owners in Nigeria. Diamond Bank introduced a POS solution sometime in 2016, that enables business owners view pending POS transactions real-time. Some of my clients complained about the efficiency of the application, we are yet to see if these issues have been resolved.
If there are better ways to deal with/manage these issues, please let us know and learn.