Says charge antithetical to financial inclusion drive

The Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) has appealed to the Central Bank of Nigeria (CBN) and the Office of the Vice President to review the five per cent charge on Point of Sale (PoS) transactions being imposed on its members

The association, while urging the Vice President and the CBN to review the current arrangement and ensure that principals provide the necessary support and funding to their agents, said the recent introduction of the five per cent electronic fee on agents had added to the burden of PoS operators.

It, however, emphasised that the fee is onerous, given that agents already shouldered numerous costs to deliver their services.

This was contained in a statement made available to journalists in Ibadan, yesterday, by the National Vice President of the association, Adeyemo Yusuf.

The statement was signed by the Osun State Chairman, Badiru Olawale; the National Public Relations Officer, Ogungbayi Ganiyu; the National Chief Aggregating Officer, Quadri Adegunwa; Vice Chairman, Bauchi State, Hassan Khadija; Edo State Chairman, Ekhator Osaro and Abia State Chairman, Chukwu Ifeyin.

The association lamented that PoS operators are not treated as priority agents for cash accessibility, resulting in difficulties accessing cash while providing essential financial services to the public.

It added that the increase would retard the financial inclusion drive of the government.

The National Vice President said: “Moreover, this increase will help reduce pricing and promote financial inclusion. We also wish to bring to the attention of the CBN and the Office of the Vice President that PoS agents in Nigeria are not provided with any form of support or funding by the banks or principals.

“This is unlike the practice in other countries, where principals provide liquidity in terms of digital and cash to their respective agents. In Nigeria, agents are expected to provide financial services to the public without any form of support or funding.

“Furthermore, agents are being taxed with interest on their operation funds, which they borrowed to provide services. They also pay electronic fees, location fees, liquidity cash movement costs, and face security threats. Despite these challenges, agents are expected to provide services without exploiting customers.”