Following the Federal Government’s intention to sanction Point of Sale operators (PoS) over the hike of their transaction charges, PoS operators have protested the intentions of the Federal Government.
According to the Federal Competition and Consumer Protection Commission, PoS operators were directed by the commission to desist from any move to hike PoS transaction charges.
The commission stated that it is currently investigating price-fixing attempts by PoS operators, and if proven guilty, they will be sanctioned.
It said, “To the extent that any combination of undertakings, including AMMBAN indeed met, agreed or decided to impose uniform or coordinated fees/tariffs for services this announcement should serve to ensure such undertakings cease and desist from that arrangement or similar discussions/conduct.”
The move comes on the heels of previous declarations by PoS agents under the auspices of the Association of Mobile Money and Bank Agents in Nigeria, Lagos Chapter, to raise transaction fees.
According to Stephen Adeoye, the association’s Public Relations Officer for the Lagos Chapter, PoS agents in the state now have updated price lists and are trying to form a task force to implement the modifications.
When enforced, customers will begin to pay N100 for withdrawals from N1000–N2,400; N200 for N3500 to N4000; N300 for N4,100 to N6,400; N400 for N6,500 to N7,900; N500 for N8500 to N10,900; N600 for N11,000 to N14,000; and N700 for N14,500 to N17,900.
In response to the pricing list’s enforcement, he stated, “To enforce this new price list is easy because we have a good relationship with the Lagos State Command, Police Force, and all the DPOs in the area. Very soon a task force will be set up in each zone so that they will work along with it.”
In a related development, the National Public Relations Officer of the Association of Mobile Money and Bank Agents in Nigeria, Oluwasegun Elegbede, confirmed that other states were also working on new price lists. He told newsmen that operators in Ogun and Edo states would soon come up with their new fees.
In the same vein, Oluwasegun Elegbede, the National Public Relations Officer of the Association of Mobile Money and Bank Agents in Nigeria, stated that other states were also working on new price lists. He informed reporters that operators in Ogun and Edo states would shortly implement new charges.
Nevertheless, the FCCPC stated in a statement issued by its Executive Vice Chairman/Chief Executive Officer, Babatunde Irukera, on Wednesday that price fixing is illegal, alters the market, inhibits innovation and efficiency, and negatively impacts consumers.
It said, “The Federal Competition & Consumer Protection Act (2018) (FCCPA) recognises indeed encourages the prerogative of businesses to organise in, and as trade associations for acceptable purposes, such as ensuring and enforcing applicable standards and best practices, as well as a measure of self-regulation within the profession or trade.
“However, the same FCCPA copiously and extensively limits the scope and extent of such collaboration, particularly to exclude coordination with respect to scope or supply of services and price of services.
“The FCCPA expressly prohibits any price-fixing or agreement among undertakings (whether bilaterally or multilaterally) or by undertakings acting in consensus on the platform, or under the aegis of an association to fix prices, coordinate supply or any other commercially sensitive factors that can limit or substantially prevent competition; or otherwise distort the market.”
According to the commission, the FCCPA imposes severe penalties for cartels or other such coordinated or collusive behavior among competitors, even at the association level.
It stated that it was prepared to fully implement the law.
According to the commission, it has launched an inquiry to see whether claims purportedly made by AMBAN (about pricing adjustments) are real, and if evidence reveals that these assertions are true, it will take appropriate regulatory action to address the conduct.
Meanwhile, AMMBAN said on Wednesday that the hike in service prices was necessary to ensure that PoS operators could continue and grow their businesses.
According to the group, the Central Bank of Nigeria is the market regulator, and its efforts are not targeted at modifying the rates of transactions set by the CBN for the operators.
It stated, “It is important to note that there are two aspects of agency banking: the regulatory part overseen by the CBN and the Small and Medium Enterprises side.
“As an association, AMMBAN is not a regulator and has no intention of usurping such powers. However, the SMEs side of the industry, which includes the agents, often bears the cost of operations, including the standard rates set by the CBN, even though they are registered under a provider, sometimes at a fee.”
AMMBAN stated that its latest decision was in direct response to the country’s current economic circumstances. It maintained that because its members’ services are not subsidized by the CBN or any of the operators, agents bear the burden of the existing economic realities.
