The Federal Competition & Consumer Protection Commission (FCCPC) on Monday mounted pressure on the Executives of the Point of Sales operators in Nigeria to shun the price fixing and allow the market to determine the rate.
This is due to the recent price fixing being enforced by the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN).
Last month, the Public Relations Officer of the AMMBAN, Lagos Chapter, Stephen Adeoye announced a unified price list for PoS transactions.
The union had said, “N1,000 to N2,000, will be N100 for withdrawal. N3,500 to N4,000 N200. N4,100 to N6,400 N3,00. N6,500 to N7,900 is N4,000. Also, N8,000 to N10,900, N500. N11,000 to N14,000 is N600. N14,500 to N17,900 will be charged N700 and N18,000 to N20,000 is N800 for withdrawal.
“For deposits, N1,000 to N4,900 is N100; N5,000 to N10,900 is N200. N11,000 to N20,900 is N300. N21,000 to N30,900 is N400. N31,000 to N40,000 is N500 and N41,000 to N50,000 is N600 for a deposit or you call it transfer.”
But the FCCPC said the Commission is concerned with the development and such conduct.
It said, “The impunity associated with defiance or persisting in a course of action prohibited by law, and clearly forbidden by regulators usually constitutes aggravating factors in determining penalties for illegal conduct where applicable.
“To be clear, the Commission has not sought to limit the prerogative of PoS service providers to determine and set prices for services in a manner of their choosing subject to Section 127 of the Federal Competition and Consumer Protection Act 2018 (FCCPA), which prohibits manifestly unjust or exploitative prices.
“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 which is the subject of the announcement, or anywhere else for that matter.
“The Commission welcomes the inherent powers and discretion of each PoS operator to set their prices based on their own internal mechanisms and relevant markets, providing consumers with choices and the best possible prices while ensuring profitability.
“The FCCPA provides the Commission with statutory tools to ensure compliance and penalise violations of the law. As previously noted, some of these penalties are stiff.”
The Commission said it is escalating the development in accordance with the FCCPA and ancillary instruments.
The Commission said it has entered an “Order & Notice (ONC) of the Commission to AMMBAN, persons identified as executives, members and non-member PoS operators to Cease and Desist from conduct that constitutes an infringement of the law.
“The ONC was issued by the Commission and served on AMMBAN. The Commission recognises that not all members can be personally served, or will become aware through service on AMMBAN. In addition, some persons such as non-AMMBAN members may become subject to the ONC. Accordingly, the Commission has, and is by this again publicly disseminating the ONC.
“The ONC however conveys the Commission’s will to enforce the law including, and up to prosecuting violators.”
