AMMBAN Proceeds with Implementation of New Service Charges Framework Despite Condemnation

The Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) has reiterated its plans to implement a new service charges framework, despite facing opposition from the Federal Competition and Consumer Protection Commission. The announcement was made by Elegbede Segun, the National Publicity Secretary of AMMBAN, on July 15, 2023.

AMMBAN's Lagos Chapter had previously unveiled an updated price list for Point of Sale (PoS) charges per transaction, which is set to take effect from July 17, 2023. While the move has been met with criticism, AMMBAN argues that it has become necessary to revise service charges as the current rates have remained unchanged since 2018.

According to Segun, PoS operators have been struggling to stay afloat due to increased costs of fuel, PoS paper roll, and rents. These expenses, coupled with the absence of support from the Central Bank of Nigeria (CBN), have eroded profits to the point that many businesses are now on the brink of closure.

"Between 2018 and now, we have never changed our service charges," said Segun. "With the cost of fuel, PoS paper roll, and rents, you will understand where we are coming from. It has gotten to the point that our profit has been eroded to the extent that our members are closing business."

The struggles faced by PoS operators have already resulted in several business closures, with Segun reporting daily calls from members who have had to shut down operations. Without an increase in service charges, the situation is likely to worsen, leading to more businesses collapsing.

Segun emphasized that the decision to raise service charges is not aimed at adding to the burden of Nigerians but rather to sustain the viability of the industry. He expressed disappointment in the lack of support from the CBN and the urgent need for businesses to cover escalating costs if they are to remain operational amidst challenging circumstances.

The AMMBAN's determination to proceed with the implementation of the new service charges framework is indicative of the underlying economic challenges confronting businesses in Nigeria's rapidly growing mobile money and banking services sector.

As the July 17 deadline draws closer, it remains to be seen how the Federal Competition and Consumer Protection Commission will respond to AMMBAN's decision. Nonetheless, the consequences of not revising service charges could have far-reaching implications for the industry and its ability to provide essential financial services to the Nigerian public.

Source of content: OOO News 2023-07-16 News

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