The Association of Mobile Money and Bank Agents in Nigeria (AMMBAN), at the 4th annual AMMBAN symposium in Lagos, have released the new price charges to guide POS operators in the state. The new price charge list is aimed at unifying the structure of POS charges and tackling the disparity that has risen among operators since the naira redesign policy of the Central Bank of Nigeria. The new price list was categorized into deposit and withdrawal.
For Deposits:
N1,000 and N4,900 will pay a service charge of N100.
N5,000 and N10,900 will attract a service charge of N200.
N11,000 and N20,900 will incur a service charge of N300.
N21,000 and N30,900 will have a service charge of N400.
N31,000 and N40,900 will be subject to a service charge of N500.
N41,000 and N50,000 will attract a service charge of N600.
For Withdrawal:
N1,000 and N2,400 will now attract a service charge of N100.
N2,500 and N4,000 will incur a service charge of N200.
N4,100 and N6,400, customers will now be charged N300.
N6,100 and N7,400 will now attract a service charge of N400.
N7,500 and N10,900 will incur a service charge of N500.
N11,000 and N14,400, a service charge of N600 will be applied.
N14,500 to N17,900 will be subject to a service charge of N700.
N18,000 and N20,000 will now attract a service charge of N800.
Late 2022 saw a massive shortage in cash nationwide; electronic portals were not working, and battling long queues at ATMs/bank counters became the custom, forcing many Nigerians to patronize POS operators. During this period, the volume of POS transactions increased by over 17.3% in Nigeria. Many operators saw the Naira scarcity as an opportunity to make a maximum profit, thus escalating price charges for withdrawal. Some areas, like the University of Lagos, experienced withdrawal charges as high as N2000 for N5000. Many POS merchants ascribed the hike in price charges due to difficulty accessing cash from banks, forcing them to increase the cost of POS transactions.
The move by AMMBAN will seek to eliminate or at least curb the extortion trend of POS merchants on their customers in Lagos, as some operators have refused to revert to normal charges even after the CBN poured cash into circulation. AMMBAN is also seeking to reduce the pressure on Nigerians, considering the country’s current economic realities. The association has also promised to forward the changes to the CBN for implementation.
