Why we need to increase service charges on POS

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The Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) has attributed the proposed increase in service charges on point of sale (POS) transactions to the current economic conditions in the country.

David Abiodun, Chairman of the Lagos State chapter of the association, stated in a phone conversation with Sunday Tribune on Saturday that the adjustment was necessary to reflect the cost of conducting business.

However, Abiodun refuted reports that the new price list would take effect on Monday, noting that the association was still consulting with other stakeholders regarding the price adjustment.

Recalling a recent television programme appearance by the Public Relations Officer of the Lagos chapter, Stephen Adeoye, he stated that the revised price list of charges would eliminate discrepancies in the industry.

Adeoye explained, “Let me tell you the price list: N1000–N2,400 will be N100 for withdrawal. N3500 to N4000 will be N200; N4,100 to N6,400 will be N300; N6,500 to N7,900 will be N400; N8500 to N10,900 will be N500; N11,000 to N14,000 will be N600; N14,500 to N17,900 will be N700; N18,000 to N2000 will N800 for withdrawal.”

Regarding deposits and transfers, Adeoye mentioned that agents could charge N100 for N1,000 to N4,900; N200 for N5,000 to N10,900; N300 for N11,000 to N20,900; N400 for N21,000 to N30,900; N500 for N31,000 to N40,000; and N600 for N41,100 to N50,000.

When asked about the implementation of the price adjustment on Monday, Abiodun clarified, “We have tried to address the misinformation in the media regarding our plan to increase service charges on POS.

We have not stated specifically when the implementation of our decision will begin. I’m surprised where you obtained the information from. “We are currently sensitising our members on the need to conduct their businesses professionally, be security conscious, and ensure that the public does not view us as part of the problem.”

Explaining the rationale behind the proposed price adjustment, he stated, “The discussed cost of service will come into effect, but we want to ensure that the public sees us as partners and not individuals looking to extort or make things difficult for them.

“Everyone in the country is aware of the cost of fuel, mobile data, and commuting to their place of business every day. In order for us to stay in business, we have to adjust our prices to reflect the current realities.

“As I speak to you, more than 70 per cent of our members have closed their shops. If we continue to misunderstand the situation and attack POS agents, there will come a time when there won’t be anyone left to conduct business.

Nobody wants to operate at a loss or leave their house in the morning and return with nothing. We can’t take a loan with a 20 per cent annual interest rate and have someone say that the cost of such a service is too high. It doesn’t add up.”

Abiodun also revealed that the association is still consulting with the Central Bank of Nigeria (CBN) and other stakeholders to ensure that “everyone is included,” adding, “All we want is to be able to take something home.”

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