The Federal Competition and Consumer Protection Commission (FCCPC) has issued a serious warning to Point of Sale (POS) operators, stating that those caught engaging in price-fixing practices could face imprisonment for up to three months.
Recently, the FCCPC served a cease-and-desist order to POS operators, forbidding any conduct that infringes on the law. This action was taken following reports of POS agents, affiliated with the Association of Mobile Money and Bank Agents Nigeria, setting new prices for transactions.
The commission has clarified that corporate entities found in violation may be fined up to N10 million, while individuals could be fined N1 million and/or face imprisonment. While the FCCPC supports fair pricing determined by market forces, it firmly opposes practices that limit consumer choices.
The FCCPC, in a statement signed by its Executive Vice Chairman/Chief Executive Officer, Babatunde Irukera, on Monday, said, “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.”
The commission said, “While the commission continues to provide consideration to, and for small businesses, enforcing the law must remain non-negotiable.
“Accordingly, the commission in escalating this in accordance with the FCCPA and ancillary instruments, has entered an Order & Notice (ONC) of the Commission to AMMBAN, persons identified as executives, members, and non-member POS operators to Cease and Desist from conduct that constitute an infringement of the law.”
It further stated, “In addition, some persons such as non-AMMBAN members may become subject to the ONC. Accordingly, the commission has, and is by this again publicly disseminating the ONC. Members are, however, invited to consider the sufficiency of service of the ONC under Section 158(4) of the FCCPA, which deems such service on their association or executives as adequate and acceptable.”
In response to this development, Victor Olojo, the National President of the Association of Mobile Money and Bank Agents in Nigeria, clarified that the association had not engaged in fixing any prices. He asserted that the association had simply released a price guide as a preventive measure to ensure agents did not exploit Nigerian consumers.
Olojo emphasized that AMMBAN, with over 1.6 million POS agents, aimed to serve the people without being involved in a price war. He highlighted that AMMBAN is a self-regulatory body and does not possess the authority to set prices, functioning solely as an association.
He reaffirmed that the state chapter’s price guide was not a form of price-fixing but rather a price cap, advising agents not to exceed it. He informed that AMMBAN had communicated its position to the FCCPC and expressed their willingness to cooperate with the government and its institutions.
Olojo further underscored that the dynamic nature of prices in various sectors, such as fuel and transportation, must be acknowledged, and AMMBAN’s focus is on maintaining competitiveness without charging excessively.
