Point of sale (PoS) operators in Nigeria are mulling another service charge increase after the Nigerian government approved a 50% tariff hike for telecommunications companies.
Ogunbayi Ganiyu, the national publicity relations officer of the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN), cited the effect of the tariff hike on their businesses.
He explained that PoS operators depend heavily on telecom services, especially mobile data, for their operations.
According to him, the tariff increase will impact the member’s operations, increasing service charges.
The development follows plans by the National Association of Telecoms Subscribers (NATCOMS) to challenge the current tariff hike in court.
NATCOMS announced its decision to legally challenge the Federal Government’s approval of a 50% tariff hike for telecommunications services.
Deolu Ogunbanjo, NATCOMS president, criticised the Nigerian Communications Commission (NCC) for failing to consult consumers during decision-making.
He noted that NATCOMS is not against a tariff review due to the challenges faced by telcos, but the approved 50% increase is excessive and detrimental to subscribers.
Ogunbanjo revealed that NATCOMS had proposed a more modest tariff adjustment of 5% to 10% to support the industry’s recovery without overburdening subscribers.
If carried out, PoS operators’ planned increase in service charges will be the second time they have raised their costs in three months.
Following the commencement of electronic money transfer levy (EMTL) charges by financial technology companies, the PoS agents announced a 100% hike in their service charges.
The operators later reduced the fee to 50%, saying the new EMTL charges had impacted them.
According to them, the commencement of the charges means that customers’ accounts will be debited each time they send or receive money via their services.
The operators’ current move to hike charges may further impoverish PoS users, especially in rural areas where their service charges are about 150%.
TimesNow.com.ng earlier reported that the Central Bank of Nigeria (CBN) had announced a daily cash withdrawal limit of N100,000 per customer for point-of-sale (PoS) transactions.
Furthermore, the customers will now be restricted to a weekly cash withdrawal limit of N500,000.
The CBN disclosed this in a circular titled ‘Circular on Cash-Out Limits for Agent Banking Transactions’ released late Tuesday, December 17, 2024.
Source: TimesNow.com.ng
