The Lagos Chapter of the Association of Mobile Money and Bank Agents in Nigeria recently announced a revised price list for Point of Sale (PoS) transactions. The announcement was made by Stephen Adeoye, the Public Relations Officer of the Lagos Chapter, during an episode of Channels Television’s Business Morning programme.
According to the report, customers in Lagos State will soon be charged ₦500 for cash withdrawals amounting to ₦8500 -₦10,000 at PoS terminals. This change is intended to regulate the fees charged by agents and ensure fair pricing for customers.
The introduction of the new price list demonstrates the association’s commitment to addressing the issue of overcharging and creating a more standardized pricing structure within the industry across Nigeria. It is also aimed at eliminating price discrepancies in the industry.
This development comes after previous statements from the association. In January, the National President of AMMBAN, Victor Olojo, stated that there were no plans to increase service charges.
Also, in February, the Central Bank of Nigeria released emergency telephone numbers for reporting PoS agents who charged more than ₦200 for cash withdrawals up to ₦10,000.
What is the new price list?
According to Stephen Adeoye, the Public Relations Officer of the Lagos Chapter, the new price list will have a slight increment in the already known charges for certain amounts of money.
₦1000 – ₦2,400 will be ₦100
₦3500 to ₦4000 will be ₦200
₦4,100 to ₦6,400 will be ₦300
₦6,500 to ₦7,900 will be ₦400
₦8500 to ₦10,900 will be ₦500
₦11,000 to ₦14,000 will be ₦600
₦14,500 to ₦17, 900 will be ₦700
₦18,000 to ₦20,000 will be ₦800
For deposits and transfers
He further stated that for deposits and transfers, agents can now charge
₦100 for ₦1,000 to ₦4,900
₦200 for ₦5000 to ₦10,900
₦300 for ₦11,000 to ₦20,900
₦400 got ₦21,000 to ₦30,900
₦500 for ₦31,000 to ₦40,000
₦600 for ₦41,100 to ₦50,000.
For other states and the new implementation strategy
For other states
In various regions or areas, and in some cases, agents or service providers may opt to lower their charges to accommodate the people within their specific areas, depending on the circumstances.
Nevertheless, the key point is that the charges should not exceed the newly set rates. This ensures that prices do not become exorbitant or unfairly inflated, providing a sense of consistency and fairness across different areas.
Speaking on this, Stephen Adeoye, the Public Relations Officer of the Lagos Chapter, further said,
On how the association hopes to enforce this new price list with two strategic plans.
The association intends to utilize its connection and cooperation with the local police and a specialized task force operating within their jurisdiction. By leveraging these relationships, they aim to enforce the new price list effectively.
Adeoye also explained, “To enforce this new price list is easy because we have a good relationship with the Lagos State Command, Police Force, and all the DPOs in the area. Very soon a task force will be set up in each zone so that they will work along with it…So, enforcing this will be easy for us. We have zones in almost all the local governments. So, our task force in each zone will locate those who are there. We also have our website, and everyone has to register.”
The association plans to explore the concept of Point of Sale (PoS) registration and certification to establish a system where qualified PoS agents can register and obtain certification. This process will likely involve verifying their compliance with the new price list and ensuring they meet certain standards set by the association.
PoS, the new financial trend
It is no surprise that the number of POS agents has increased dramatically throughout the years. Nigeria currently has over 1.5m POS agents and according to a Technext report analysis, there has been a significant surge in both the volume and value of Point of Sale (POS) transactions over the years.
POS transactions involve the measurement and analysis of the number of transactions and the monetary value of those transactions processed through Point of Sale systems within a specific timeframe.
In 2012, POS transaction value was recorded at ₦0.05 trillion, accompanied by a transaction volume of 2.6 million. However, fast forward to 2021, the figures have witnessed remarkable growth. The POS transaction value escalated to ₦6.4 trillion, while the transaction volume soared to 982.8 million.
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