The Federal Government(FG) through the Federal Competition and Consumer Protection Commission (FCCPC) is set to sanction Point of Sales(PoS) operators who fix service prices as instructed by the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN).
Hence, FCCPC said, it is unlawful for AMMBAN to fix the prices for its members.
This is even as it cleared the air that it is not against individual PoS operators increasing their prices as they deem fit to make a profit from the business.
The chief executive officer, FCCPC, Babatunde Irukera, who disclosed this in a statement, averred that, any attempt to establish a PoS business cartel would be prohibited by the FCCPC.
Recalling that FCCPC had earlier warned AMMBAN to desist from fixing price or face prosecution, Irukera said: “Just because the Commission was yet to persecute any POS Operators, does not mean that it is weak. The Commission prefers advocacy approach to enforce obedience to the law because the PoS business is dominated by young Nigerians who are creating jobs for themselves.”
However, the CEO emphasised that the commission will not hesitate to sanction any PoS operator who go against the law, while reminding PoS operators that violation of an order of the Commission attracts additional consequences apart from the underlying illegal conduct that is the subject of the order such as up to N10,000,000 for corporate entities; and N1,000,000 and or a prison sentence of up to three months for individuals.
“Considering that membership of AMMBAN probably consists mainly of small businesses and creates employment for young and mostly vulnerable citizens, the Commission adopted advocacy and business education as the tool to promote and enforce obedience to the law.
“This is a prudential, not weak or helpless approach to ensuring compliance, and it underscores the Commission’s proportionality approach to its consequence management system; and interpretation of the law,” he further explained.
The CEO disclosed that 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,” he clarified.
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