The Lagos state chapter of the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) decision to hike the price of PoS transactions in the state is generating ripples; TOPE SUNDAY writes.
Last week, the Lagos state chapter of Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) announced a new price list for PoS transactions in the state. It hinged its decision on the need to deter fraud and curtail “agents who still overcharge.”
Move to prevent over-charging?
The spokesperson of the association, Mr. Stephen Adeoye, disclosed this while featuring on a Channels Television programme on Friday last week. He argued that the uniform fee structure would prevent a recurrence of what happened during the cash scarcity period, where agents overcharged customers without any regulation.
For withdrawals, Adeoye said agents in the state have been mandated to charge N100 for any amount between N1000 and N2, 400; N200 for N3, 500 and N4, 000, and N300 for N4, 100 and N6, 400.
Adeoye said withdrawals from N6, 500 to N7, 900 would attract a fee of N400, while a charge of N500 would be for transactions from N8, 500 to N10, 900.
Others are N600 for N11, 000 to N14, 000; N700 for N14, 500 to N17, 900; and N800 for N18, 000 to N2o, 000 for withdrawal.
“Some still overcharge customers and we don’t want that. All of us want things to be easier for our customers and the country as a whole,” he said.
Backing
Although the development has not extended to other states of the federation, and the Federal Capital Territory (FCT), it is believed that what happens in Lagos literally has ripple effects on some states. To this end, it is said that some PoS operators may take after their Lagos counterparts, which many described “self-serving.”
For a POS user Taye Amos, the new regime is a welcome development in order to meet the current transport reality, but he warned that the PoS operators should be blamed for the development.
“People must adjust prices to meet current transport reality, instead of blaming them, take the blame by voting and supporting a government who likes putting average citizens into hardship,” he said.
Also, Mr. Ernest Aiworo, a social media user, said the PoS operators’ action was a reaction to the hike in the pump price of petroleum, adding that, “Since the government increased fuel what did u expect? Phone-charging is now N100.”
‘It’s self-price control’
The development to some Nigerians is self-serving and a way to monopolise the PoS market; they, therefore, called on the government to “quickly” stem their plans.
A public affairs analyst, Comrade Sunday Alifia, told Blueprint Weekend that the PoS operators’ action was one of the fall-outs of the gains they made during the cashless policy hardships, and called on the government to urgently stop them.
He said: “During the CBN cashless policy, PoS operators tested their might by increasing their service charge astronomically and in a crazy form and Nigerians as it’s always being, quickly acclamatised, especially to those who did not have choice but used it. So, several of those operators manipulated and enjoyed it as it lasted.
“So, when they reversed after the policy subsided, they felt unhappy. It seems they wanted it back having enjoyed the period. Another school of thought held that virtually everything in Nigeria is responding, reacting to the economic distress, resulting from the removal of subsidies and that even the bread sellers and others are equally threatening to increase prices. According to him, PoS operators are not different since they are Nigerians, especially when the cost of their operations goes up; so, they don’t have a choice.”
Continuing, he said, “How would Nigerians, and indeed other states, react in the event that Lagos scaled through the implementation and as the case might be that ‘when Lagos sneezes, the entire country catches a cold?’ Of course, it will definitely happen, but Nigerians won’t take it likely and they will react the same way petroleum stations are facing today.
“No more cue because the people are dangerously cutting the level of their consumption as some even packed their vehicles. I foresee low patronage as ATM would become an option for me instead of PoS and I expect the regulatory bodies to wake up before it is too late.”
Also speaking with this reporter, an Abuja-based Real Estate economist, Mr. Benjamin Onigbinde, questioned the legal status of the Association Mobile Money and Bank Agent in Nigeria, and accused its members of forming a cartel.
Onigbinde noted that the planned increase in charges on PoS transactions in Lagos “is not good for the economy” and asked the government to curb the association’s excesses.
“The question is how legal is this Association of Mobile Money and Bank Agents in Nigeria? How do they fit into the finance and banking infrastructure model of the country? They are now forming a cartel and very soon they will become just like the National Association of Transport Workers or start embarking on strikes.
“My position is that the move to increase charges on PoS transactions in Lagos is not good for the economy because if not properly curbed it would spread into other parts of the country. It should be a free market with no regulations from any private sector association. The government should take immediate steps to stop this type of price control.”
Govt’s action
However, the federal government through the Federal Competition and Consumer Protection Commission (FCCPC) has barred PoS operators in the country from implementing the recently announced increase in charges for PoS transactions.
The Commission in a statement signed by its chief executive officer, Mr. Babatunde Irukera, stated that the Federal Competition and Consumer Protection Act (FCCPA) “does now allow any trade group to fix prices in a way that is capable of distorting the market.” It warned the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) not to implement the announced prices
Irukera, who said any attempt to go ahead would be met with penalties as spelt in the FCCPA, said, “The Federal Competition & Consumer Protection Act (2018) (FCCPA) recognises and, 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.
“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.”
