The Federal Government has issued a stern warning to point-of-sale (POS) operators, urging them to refrain from any attempts to raise transaction fees.
The government emphasized the serious consequences and sanctions that would follow such actions.
According to recent reports, the Lagos chapter of the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) had recently introduced a new price list for POS transactions within the state.
Stephen Adeoye, the spokesperson for the association, explained during an interview with Channels Television on July 1 that this measure was implemented to combat fraud and prevent excessive charges imposed by agents.
In response to this move, the Federal Competition and Consumer Protection Commission (FCCPC) issued a statement on Wednesday, urging agent bankers to avoid engaging in such plans.
The agency, under the leadership of Babatunde Irukera, the executive vice-chairman and chief executive officer, highlighted that price-fixing violates the law and hampers market dynamics, hindering innovation and efficiency while negatively impacting consumers.
“The Federal Competition and 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,” the statement reads.
“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.” the commission says.