PoS new charges: Economist urges CBN to engage AMMBAN

An economist, Prof. Uche Uwaleke, has urged the Central  Bank of Nigeria (CBN) to look into the new service charges on Point of Sale (PoS) trasactions by the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN).

Uwaleke, Professor of Finance and Capital Market at the Nasarawa State University, Keffi, gave the advice in an interview with journalists on Monday in Lagos.

He said that rather than issue threats to clamp  down  on the operators, the authorities, especially the CBN, could engage their unions.

According to him, this will provide incentives that will enable the union maintain current level of charges and if possible reduce it further.

Uwaleke noted that it would be unrealistic to expect that PoS operators would not adjust their charges to reflect the current economic realities.

He noted that was because of the present galloping inflation resulting from the sudden removal of fuel subsidy.

“These operators experience the same rising cost of living like every other Nigerian in other sectors of the economy, where costs have risen.

“The argument that fuel subsidy removal has nothing to do with PoS charges is unfounded.

“The PoS agents use public transport, feed, pay electricity bills, pay rent, and so on, the cost of which have all skyrocketed,” he said.

Reports that the Spokesperson of the Lagos chapter of AMMBAN, Mr Stephen Adeoye, had on June 30, announced a new price list for PoS transactions in the state.

Uwaleke, also Head, Securities and Investment Management Department, said this was to prevent a recurrence of what happened during the cash scarcity period, where agents overcharged customers without any regulation.

He suggested agents in the state to charge N100 for an amount between N1,000 – N2,400; N200 for N3,500 to N4,000; and N300 for N4,100 to N6,400.

He said withdrawals from N6,500 to N7,900 will attract a fee of N400; while a charge of N500 will be for transactions from N8500 to N10,900.

Others are N600 for N11,000 to N14,000; N700 for N14,500 to N17, 900; and N800 for N18,000 to N20,000 for withdrawal.

However, in a statement, the Federal Competition and Consumer Protection Commission (Commission) condemned the move and vowed to investigate.

The CBN had also promised to prosecute PoS operators, who charge above the stipulated amount of N100 for every transfer.

Meanwhile, a correspondent who monitored the implementation of the new service charges which was to begin July 17, reported that PoS agents around Egbe, Liasu and Ikotun area of Alimosho LGA, were still charging N100 for N5,000 and N200 for N10,000.

A PoS agent, Mrs Sefiat Balogun, told journalists that the reason she had not begun charging the new fees was because her colleagues were still working with the old service charges.