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The Federal Competition and Consumer Protection Commission (FCCPC) has issued a directive prohibiting Point of Sale (PoS) operators in Nigeria from implementing the recently announced increase in charges for PoS transactions.
In a statement released on Wednesday (July 5, 2023) and signed by the Chief Executive Officer, Mr. Babatunde Irukera, the FCCPC stated that the Federal Competition and Consumer Protection Act (FCCPA) does not permit any trade group to fix prices in a manner that could distort the market. Irukera warned the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) against implementing the proposed price changes, emphasizing that any attempt to do so would result in penalties as stipulated in the FCCPA.
Price fixing is not permitted Highlighting that the FCCPA strongly disapproves of price fixing by trade groups in Nigeria, Irukera stated:
“The Federal Competition & Consumer Protection Act (2018) (FCCPA) recognizes and encourages the ability of businesses to organize into trade associations for acceptable purposes, such as ensuring and enforcing applicable standards and best practices, as well as a degree of self-regulation within the profession or trade. However, the FCCPA extensively limits the scope and extent of such collaboration, particularly to exclude coordination related to service scope, supply, price, or any other commercially sensitive factors that can restrict or substantially impede competition, or otherwise distort the market.
“The FCCPA expressly prohibits price-fixing or agreements among undertakings (whether bilateral or multilateral), or by undertakings acting in consensus under the auspices of an association, to fix prices, coordinate supply, or engage in any other conduct that can limit competition or distort the market.
“While the aspiration of a profession or businesses in a trade association to prevent fraud, excessive or unjust prices is commendable, fixing prices is not an acceptable or proven way to achieve these goals. On the contrary, price-fixing distorts the market, hinders innovation and efficiency, and does not benefit consumers or other businesses, except for those involved in such illegal conspiracies or conduct.
“The FCCPA imposes severe penalties for cartels or any similar coordinated or collusive conduct among competitors, even at the association level. The Commission will vigorously enforce the law to its fullest extent when there is sufficient evidence of a business participating in such prohibited conduct or arrangement, directly or indirectly.
“To the extent that any combination of undertakings, including AMMBAN, met, agreed, or decided to impose uniform or coordinated fees/tariffs for services, this announcement should serve as a notice for such undertakings to cease and desist from such arrangements or similar discussions/conduct.
“The Commission is also commencing an investigation to verify whether the statement made by AMBANN is truly representative or erroneous. If evidence confirms the accuracy of the statement, the Commission will take appropriate regulatory action to address the conduct accordingly.”
Irukera urged consumers to provide useful and credible information that can assist in the investigation and enforcement process.
AMMBAN’s announcement The Association of Mobile Money and Bank Agents In Nigeria (AMMBAN) had recently announced a unified price structure for PoS transactions in Lagos. Stephen Adeoye, the spokesperson for the Lagos Chapter of AMMBAN, disclosed the details of the new price list during an interview on Channels TV. According to Adeoye, the service charges for withdrawals range from N100 for amounts up to N1,000 and N2,400, to N800 for withdrawals between N18,000 and N20,000.
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