According to the Association of Mobile Money and Bank Agents in Nigeria, the recent increase in service fees was necessary to safeguard the survival and continued operation of Point of Sale businesses.
It noted that the cost of production has increased dramatically and claimed that the increment attempt in the states of Lagos, Ogun, and Edo was a direct reaction to the nation’s current economic conditions.
The Federal Competition and Consumer Protection Commission and the Central Bank of Nigeria both responded to the planned increase
But in response, the organization underlined that rising inflation has significantly impacted the “Cost to Serve” and that agency business has become unprofitable for its agents in a statement issued by the National Public Relations officer, Oluwasegun Elegbede, on Wednesday.
The statement read partly, “The recent action, in direct response to the current economic realities in the country, aims to ensure that agents can continue to stay in business.”
“It is essential to remember that our services are not subsidized by the CBN or any of the operators. The burden of the current economic reality lies squarely on the shoulders of each and every agent.
“Today, the average agent faces numerous challenges, including surging inflation, overhead costs (such as source of funding, rent, staff salaries, POS paper costs, data subscriptions, security, multiple taxation/levies), and various risks such as loss of funds through licensed operators’ channels, fraud, and robbery.”
Details later…