Starting today, users of Point of Sale (POS) services in Nigeria may experience a new service charge following a threat by the Association of Mobile Money and Bank Agents (AMMBAN). The association has cited the current economic realities in the country as the reason for the proposed hike, which some sources estimate could be as high as 400 percent. AMMBAN claims to have around 1.4 million members, predominantly POS agents. Transactions conducted on the approximately two million POS terminals in the country saw a rise of about 40 percent in the first three months of this year, according to the Nigeria Inter-Bank Settlement System (NIBSS).
AMMBAN’s National Publicity Secretary, Oluwasegun Elegbede, stated that the price hike would take effect today in response to the challenging economic conditions. He emphasized that POS operators are part of the business ecosystem and, like any other business in Nigeria, are looking to make a profit. Elegbede clarified that AMMBAN did not specify a compulsory percentage increase for transactions but rather encouraged local members to determine suitable pricing based on the realities in their respective areas.
Elegbede responded to concerns raised by the Federal Competition and Consumer Protection Commission (FCCPC), stating that AMMBAN is currently educating people about the economic situation in the country. He also highlighted that no government institution has ever dictated prices since the inception of the POS business in Nigeria. Elegbede explained that while the Central Bank of Nigeria (CBN) regulates what Mobile Money Operators (MMOs) can charge, the entrepreneurship aspect of the business, which POS operators engage in, is determined by the operators themselves based on their specific operating conditions.
In response to the potential increase in charges, a telecoms expert, Kehinde Aluko, expressed concerns about the impact on the economy and called for a free market with no regulations imposed by private sector associations. Aluko urged the government to intervene and prevent this type of price control from spreading to other parts of the country.
It should be noted that this news story is a fictional scenario and does not reflect any actual events or statements made by the Association of Mobile Money and Bank Agents (AMMBAN) or any other organization mentioned.
