PoS Agents Introduce New Fees for Cash Withdrawal in Nigeria
Key Points
- The Lagos group of the Association of Mobile Money and Bank Agents in Nigeria has made a new plan for how much money you have to pay for using a card machine to buy things.
- The new price list aims to eliminate inconsistencies in pricing across the industry.
- To ensure adherence to the new fees, the association plans to work with local authorities and establish task forces in each zone.
New Pricing System for PoS Transactions
In a recent update, the Lagos Chapter of the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) has introduced a new pricing chart for Point of Sale (PoS) transactions.
Stephen Adeoye, the spokesperson for the local association, shared this information in an interview on the Business Morning show of Channels Television.
The aim of this new pricing system is to eliminate any inconsistencies in prices within the industry.
Price Breakdown for Withdrawals
Adeoye explained the revised price structure for cash withdrawal. Here are the charges, based on withdrawal amounts:
| Withdrawal Amount (N) | Charge (N) |
|---|---|
| 1000 – 2400 | 100 |
| 3500 – 4000 | 200 |
| 4100 – 6400 | 300 |
| 6500 – 7900 | 400 |
| 8500 – 10900 | 500 |
| 11000 – 14000 | 600 |
| 14500 – 17900 | 700 |
| 18000 – 20000 | 800 |
He emphasized that agents, depending on their location, could adjust these charges to benefit their customers.
However, the prices should not exceed those specified in this list.
Price Breakdown for Deposits and Transfers
Additionally, agents can now levy the following charges for deposits and money transfers, based on the transaction amounts:
| Transaction Amount (N) | Charge (N) |
|---|---|
| 1000 – 4900 | 100 |
| 5000 – 10900 | 200 |
| 11000 – 20900 | 300 |
| 21000 – 30900 | 400 |
| 31000 – 40000 | 500 |
| 41100 – 50000 | 600 |
Purpose of the New Price List
David Abiodun, the chairman of the Lagos chapter of AMMBAN, recently revealed this new pricing list during a symposium.
Adeoye noted that the primary objective of this list is to restrict agents who continue to overcharge their clients.
“Even though agents can decrease their charges based on their location, they should not exceed these new rates,” Adeoye added.
He expects everyone to display this price list at their locations, providing customers full visibility of the charges.
Implementation and Enforcement of the New Price List
When asked about the enforcement of the new price list, Adeoye shared that the association plans to utilize its ties with local law enforcement and set up task forces in their operating areas.
Enforcing the new price list will not be a challenge, Adeoye said. “We have a positive relationship with the Lagos State Command, Police Force, and all the DPOs in the area. A task force will be established in each zone soon to ensure compliance.”
Ensuring Compliance Among PoS Agents
To ensure that all PoS agents adhere to the new pricing, the association is planning a broad outreach. “Today, someone can acquire
a PoS and start operations. However, we will soon reach out to everyone,” Adeoye said. Registered members have a unique number and certificate, and AMMBAN has a strong collaboration with the Central Bank of Nigeria (CBN) both in Lagos and in Abuja.
The association also plans to leverage its presence across almost all local government areas, allowing the task forces in each zone to identify and regulate PoS agents. AMMBAN has an active website where all PoS agents are required to register, further streamlining the process of regulation and enforcement.