ENUGU, Nigeria (VOICE OF NAIJA) – The Federal Government of Nigeria, through the Federal Competition and Consumer Protection Commission, has issued a stern warning to Point of Sale operators (POS) regarding their illegal charges.
“The government views illegal pricing as a violation of the law,” declared the Commission.
This development comes after PoS operators, acting under the Association of Mobile Money and Bank Agents in Nigeria, attempted to establish new pricing for PoS transactions, starting on 17 July 2023.
According to the Commission, any PoS operator found in breach of this order will be subject to a penalty of N10 million for corporate entities and N1 million, or a prison sentence of up to three months for individuals.
“The Commission advises 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,” stated the Executive Vice Chairman/Chief Executive Officer of the FCCPC, Babatunde Irukera, in a statement released on Monday.
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While the Commission respects the prerogative of PoS service providers to determine and set prices for their services as they see fit, it emphasizes that this must be in line with Section 127 of the Federal Competition and Consumer Protection Act 2018, which prohibits manifestly unjust or exploitative prices.
The Commission clarified that it supports a pricing methodology that is influenced by market forces in a free, competitive, and undistorted market. However, it asserted that there is no evidence of a lack of competition in the PoS market in Lagos or elsewhere.
Addressing concerns raised by small businesses, the Commission said, “While the Commission continues to provide consideration for small businesses, enforcing the law must remain non-negotiable.”
“In light of this, the Commission, in accordance with the FCCPA and ancillary instruments, has issued an Order & Notice (ONC) to AMMBAN, its executives, members, and non-member PoS operators, urging them to Cease and Desist from conduct that constitutes an infringement of the law,” the statement added.
The Commission acknowledged that the ONC had been served on AMMBAN and noted that personal service may not be possible for all members or they might become aware of the ONC through AMMBAN.
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“In addition, some individuals, such as non-AMMBAN members, may also become subject to the ONC. Consequently, the Commission is publicly disseminating the ONC once again. Members are, however, invited to consider the sufficiency of service of the ONC under Section 158(4) of the FCCPA, which deems service on their association or executives as adequate and acceptable.”
Having initially pursued a cautious and collaborative approach, the Commission now emphasizes the implementation of the ONC to enforce the law, including possible prosecution of violators and affiliates who may otherwise be held liable for the conduct of a violating company or business.
“In addition to stipulated statutory consequences, although the Commission prefers not to disrupt the business and operations of small enterprises, it will prohibit merchant services and privileges to PoS operators or AMMBAN members who persist in conduct that is inconsistent with the law and economic efficiency,” the Commission warned.