“We’re Not Against it”: FG Gives PoS Operators the Go-ahead to Increase Prices With Conditions

Jul 24, 2023 | Uncategorized

  • The Federal Competition and Consumer Protection Commission (FCCPC) has said PoS operators can hike service charges
  • In a statement on Monday, July 2023, Babatunde Irukera said the members can only fix prices individually and not as an association
  • He said the Commission would move against attempts by AMMBAN members to act as a cartel and fix prices

The Federal Competition and Consumer Protection Commission (FCCPC) has said that the Commission is okay with Point of Sale (PoS) operators increasing their charges if it is done individually.

The federal government agency said it was against the attempt by the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) to fix the prices for its members.

FCCPC, Pos Oprators
Chief Executive Officer of FCCPC, Babatude Irukera
Credit: Bloomberg / Contributor
Source: Getty Images

FCCPC to employ dialogue with operators

The Chief Executive Officer of the Commission, Babatunde Irukera, disclosed this on Monday, July 24, 2023, in a statement, saying that the FCCPC would not allow any attempt to create a cartel out of the PoS business that fixes prices.

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Iruketa said the Commission was worried about comments from AMMBAN’s executive.

Legit.ng exclusively reported that AMMBAN recently released a list of new charges by PoS agents across Nigeria.

Irukera said that the Commission would employ advocacy and persuasion but would not hesitate to sanction defaulters.

According to the FCCPC boss, the PoS business is dominated by young, unemployed, and vulnerable Nigerians creating jobs for themselves.

“This is a prudential, not weak or helpless approach to ensuring compliance, and it underscores the Commission’s proportionality approach to its consequence management system; and interpretation of the law,” he said.

He said the Commission does not want to limit the freedom of PoS operators to set prices for services but said Section 127 of the FCCPC Act 2018 forbids unjust or exploitative prices.

Irukera said:

“As a matter of fact, and to the contrary, the Commission respects and encourages a pricing methodology that is the product of market forces in a free, competitive, and undistorted market.

“There is no evidence that the PoS market lacks sufficient players or competition in Lagos, the announcement’s subject, or anywhere else.

“The Commission welcomes the inherent powers and discretion of each PoS operator to set their prices based on their internal mechanisms and relevant markets, providing consumers with choices and the best possible prices while ensuring profitability,” he said.

FCCPC to moves to prosecute AMMBAN members

Nairametrics reports that the FCCPC helmsman said the Commission had identified persons within AMMBAN with the view to enforce the FCCPC Act and written a cease and desist notice to them to stop conducts constituting a breach of the FCCPC Act.

“Accordingly, the Commission, in escalating this following the FCCPA and ancillary instruments, has entered an Order & Notice (ONC) of the Commission to AMMBAN, persons identified as executives, members, and non-member PoS operators to Desist from conduct that constitutes an infringement of the law. Consequently, the Commission issued the ONC and served on AMMBAN,” he said.

He told PoS operators that violating an order of the Commission attracts consequences from N10 million for corporate bodies to N1 million for individuals, including a prison sentence.

“We’re Ready”: POS operators ignore CBN, begin implementation of new deposit, withdrawal charges

Legit.ng reported that starting Monday, July 17, 2023, the Point of Sale (POS) operators Point of Sales (POS) operators, under the aegis of the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) began the implementation of new withdrawal and deposit charges.

The National Publicity Secretary of the association, Elegbede Segun disclosed this while speaking to journalists over the weekend.

According to Segun, the association is well-prepared to commence the implementation despite criticism from Nigerians, Punch reports.

Source: Legit.ng

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