The Federal Government, represented by the Federal Competition and Consumer Protection Commission (FCCPC), has taken a decisive stance against Point of Sale (PoS) operators engaging in activities that violate the law.
This move comes after PoS operators, under the Association of Mobile Money and Bank Agents in Nigeria, attempted to implement new pricing for PoS transactions starting on July 17, 2023.
According to the FCCPC, any PoS operator found in breach of the cease-and-desist order will face severe penalties, including a fine of N10 million for corporate entities and a fine of N1 million or a prison sentence of up to three months for individuals.
In a statement signed by its Executive Vice Chairman/Chief Executive Officer, Babatunde Irukera, the FCCPC clarified that it does not seek to restrict the prerogative of PoS service providers to determine their prices.
However, they emphasize that pricing should adhere to Section 127 of the Federal Competition and Consumer Protection Act 2018, which prohibits manifestly unjust or exploitative prices.
The commission further affirms its support for a pricing methodology driven by market forces in a free, competitive, and undistorted market. They stress that there is no evidence of a lack of sufficient players or competition in the PoS market, both in Lagos and elsewhere.
While the FCCPC values a cautious and collaborative approach, it now issues the Order & Notice (ONC) to the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN), as well as individual PoS operators, instructing them to cease any conduct that violates the law.
The ONC has been officially served on AMMBAN, and the commission ensures that the dissemination process will reach all relevant parties, including non-AMMBAN members. The FCCPC emphasizes its commitment to enforcing the law and warns that violators and their affiliates may face prosecution and statutory liabilities for non-compliant conduct.
Though the commission prefers not to disrupt small enterprises, it retains the authority to prohibit merchant services and privileges to PoS operators or AMMBAN members who persist in activities inconsistent with the law and economic efficiency.