The Association of Mobile Money and Bank Agents in Nigeria, has cited the impact of rising inflation costs on agents
AMMBAN claimed that the ‘cost to serve’ was the rationale for raising PoS transaction prices.
This was confirmed on Wednesday in a press statement made in response to criticism of the increase in PoS transaction prices.
“First and foremost, we wish to acknowledge the CBN’s role as the market regulator and emphasize that AMMBAN’s efforts are not aimed at changing the prices of transactions fixed by the CBN for the operators, that is not our business.
“However, the Small and Medium Enterprises side of the industry, which includes the agents, frequently bears the cost of operations, including the standard rates set by the CBN, even though they are registered with a provider, sometimes for a fee.”
“The recent action, taken in direct response to the country’s current economic realities, aims to ensure that agents can continue to do business.” It is critical to understand that neither the CBN nor any of the operators subsidize our services. The current economic reality places the weight completely on the shoulders of each and every agent.”
The Association explained that the average agent today faces numerous challenges, including surging inflation, overhead costs (such as the 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.”
It claimed that the majority of agents are no longer profiting in the agency business.
“We ask the CBN and other key stakeholders to keep in mind that while they are creating policies in their boardrooms and offices, over 1.8 million mobile money and bank agents are on the streets across the country with little or no support.”
