ABUJA, Nigeria – The Federal Competition and Consumer Protection Commission, FCCPC, in Nigeria has delivered a sharp blow to the country’s Point of Sale, PoS, operators, issuing a cease-and-desist order aimed at halting unlawful conduct about the new pricing of PoS transactions.
The Association of Mobile Money and Bank Agents in Nigeria, a collective of PoS operators, instigated a new pricing model on July 17, 2023, which the FCCPC says violates consumer protection laws.
In a statement released on Monday, July 24, 2023, and signed by the Executive Vice Chairman/Chief Executive Officer, Babatunde Irukera, the FCCPC laid out the potential penalties for violation.
“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.”
While the FCCPC acknowledges the rights of PoS service providers to set prices in a free, competitive market, it insists that the law prohibits unjust or exploitative prices.
According to the commission, no evidence suggests a lack of competition among PoS operators in Lagos or other regions of Nigeria that would necessitate price regulation.
The FCCPC’s statement declared, “While the Commission continues to provide consideration to, and for small businesses, enforcing the law must remain non-negotiable.”
The Order & Notice, ONC, of non-compliance has already been served on the Association of Mobile Money and Bank Agents in Nigeria, and the FCCPC aims to ensure that all members and non-members alike are aware of the ONC.
The FCCPC has warned that in addition to the statutory penalties, it may prohibit merchant services and privileges to PoS operators or association members who continue to act contrary to law and economic efficiency.
The FCCPC’s decision comes as a tough stance against practices that undermine the competitiveness of the Nigerian financial technology sector and safeguard consumer rights.
How the association and individual PoS operators will respond to this directive remains to be seen.
