The Federal Competition and Consumer Protection Commission (FCCPC) has barred PoS operators in Nigeria from implementing the recently announced increase in charges for PoS transactions.
The Commission in a statement released on Wednesday and signed by its Chief ExecutiveOfficer, Mr. Babatunde Irukera, said the Federal Competition and Consumer Protection Act (FCCPA) does now allow any trade group to fix price in a way that is capable of distorting the market. While warning the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) not to implement the announced prices, Irukera said any attempt to go ahead would be met with penalties as spelt in the FCCPA.
Price fixing is not allowed
While noting that the FCCPA frowns at price fixing by any trade group in Nigeria, Irukera said:
- “The Federal Competition & Consumer Protection Act (2018) (FCCPA) recognizes; 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 the 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.
- “An aspiration by members of a profession or businesses in a trade association to prevent fraud; excessive or unjust prices is laudable, however, fixing prices is not an acceptable or even proven way to accomplish these goals. On the contrary, fixing prices distorts the market, prevents innovation and efficiency and does not redound to the benefit of consumers or other businesses except the participants of such illegal conspiracies or conduct.
- “The FCCPA provides stiff penalties for cartels or any similar coordinated or collusive conduct among competitors, even at association levels; and the Commission will seek to enforce the law to its fullest extent possible where there is sufficient evidence that a business has, or is participating in any such prohibited conduct or arrangement either directly, or indirectly.
- “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 Commission is also opening an investigation to ensure the purported statement by AMBANN is not truly representative or erroneous. Where evidence demonstrates that the statement is factually accurate, the Commission will take appropriate regulatory steps to address the conduct accordingly.”
Irukera urged consumers to provide useful and credible information that can assist investigation and enforcement in this regard.
AMMBAN’s announcement
The Association of Mobile Money and Bank Agents In Nigeria (AMMBAN) had on Friday announced a unified price for PoS operators in Lagos.
The spokesman of the Lagos Chapter of AMMBAN, Stephen Adeoye, while giving the details of the unified price list for POS transactions on Channels TV, said:
- “As the image maker of the Lagos Chapter of the Association of Mobile Money and Bank Agents In Nigeria, it is easy for me to give the full details of the increase.”
He explained that for withdrawals up to N1,000 and N2,400, Nigerians are expected to pay a service charge of N100 while from N2,500 to N4,000, it is N200.
Withdrawals from N4,100 to N6,400 will incur a service fee of N300 while N6,500 to N7,900 is N400 and N8,000 to N10,900 will pay N500.
Adeoye said withdrawals from N11,000 to N14,400 will attract a service charge of N600 while N14,500 to N17,900 will cough out N700 and N18,000 to N20,000 will now pay N800.
Unfortunately, this would send the POS operators out of market and would give the opportunity for the FINTECH services to take over their share of the market.
That is nit possible. How can the Fintech takes their place when they are directly working for fintechs
FCCPC is very wrong. They need to understand the cost structure faced by the PoS operators. Cost of renting a kiosk or shop is up. Cost of fuelling generator is up.. Data runs faster to finish these days, attendants are demanding increased pay, cost of securing facility is up. Obviously, the operators must be allowed to make reasonable profit otherwise there will.be blacketing in that sector and influx of fake currency from.untraceable operators. Every.other sectors are asking for jerk.up.in.prices, so.why.not.pos operators?
Alot of them use their home and it is self run. Moreso, I pity the POS operators because they are creating opportunity that will make them extinct. every business think there are the only option until new technologies come up and the becomes a thing of the pass. POS operators are making profit and we have not forgotten their unpatriotic stance during the Naira redesign policy.
With the high cost of leaving in the country currently, why can’t pos increase their prices.
Everything we make use of in the business has increased drastically in price including our means of transportation, even our own personal expenses can’t be taken care of with just what we get from the business, so how will we cover these areas if not from this business we’re in
Should we also talk about the insecurity we face everyday in the business? I can mention more than 20 pos agents that have been robbed/scammed in just last month and few lost their lives in the process so how will we account for all these? How will we cover up our loses in this business? If not from this same business.
Every other business sector were allowed to increase the price of their services so why not pos.
What reason did they have to ban the increase in pos agent y dont u ppl go to the market and ban markertwr too for inflating there price even pepper is cost juat 5seeds of pepper for #100 yet is the same transport if those of us that leave around the area where there is no banking system n we have to travel to town to make withdrawal and still come back to charge 100 what gain did we have okay from matogun to lagos state ie fagba to n fro is 1500 and above yet u might not make up to that 1500 a day after removing ur transport fair so pls they should look into it transportation is on the high side yet u blame pos operators for not increasing chargers we all are in the page so pls look into it.
Why didn’t you sanction the people increasing prices of goods and other commodities in the nation? Do you know the risk involved in running a POS business? Things has changed, cost of running POS business has increased.
Since last 3 year’s ago POS operator’s are celebrating lost not gaining with reduclous charge’s without any regulations if FCCPC can assist look into this it will be fine because commercial Banks & micro finance also MMO have an umbrella regulate them nothing stop gorv to intervein and fixed affordable price for million’s of POS operator’s as univerfy price in the state’s
WELL DONE FCCPC!
It’s clear that most (if not all) of the comments here have no void what the FCCPC moved against. The FCCPC is NOT against a price increase, but rather is against PRICE-FIXING. In other words, there should be price COMPETITION, and those who want to raise their prices are free to do so without compelling ALL agents to do the same, so that those who choose to keep their fees lower should be able to enjoy increased clientele.