PoS Operators To Be Fined ₦‎1M For Illegal Pricing

 The Federal Competition and Consumer Protection Commission, an agency of the Nigerian government has issued a cease-and-desist order to Point of Sale (POS) operators against actions that infringes the law.

This is coming on the heels of a July 17, 2023 new pricing model for transactions by the PoS operators, under the umbrella of the Association of Mobile Money and Bank Agents in Nigeria.

The FCCPC warns that PoS operators that found to violate the order will pay N10m for corporate entities and N1m and, or, a prison sentence of up to three months for individuals.

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The commission 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.”

FCCPC added that it though it has not sought to limit the prerogative of PoS service providers to determine and set prices for services in a manner of their choosing, but subject to Section 127 of the Federal Competition and Consumer Protection Act 2018, they are prohibited from fixing manifestly unjust or exploitative prices.

While noting that it respects and encourages a pricing methodology that is the product of market forces in a free, competitive, and undistorted market, the commission said there is no evidence that the PoS market lacks sufficient players or competition in Lagos or anywhere else.

 “While the Commission continues to provide consideration to, and for small businesses, enforcing the law must remain non-negotiable", the commission said.

“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 constitutes 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 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.”