Babatunde Irukera

The Federal Competition and Consumer Protection Commission (FCCPC), has warned Point of Sales  (PoS) operators, under the aegis of the Lagos Chapter of the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN), against setting  uniform prices for a range of transaction services.

 

The Executive Vice Chairman of the Commission, Mr. Babatunde Irukera, in a statement,  argued that  while the  Federal  Competition & Consumer Protection  Act (FCCPA) 2018 recognises the right of businesses to operate as trade associations for acceptable purposes, same FCCPA prohibits coordination with  respect to supply of services, and price of services.

 

The FCCPC’s boss  insisted that the Commission will not, in any way, go against any aspiration by members of a profession or businesses in a trade association, aimed at preventing fraud,  excessive or unjust prices.

 

He, however, described price-fixing,  as ‘not an acceptable way of accomplishing such goals’.

 

According to him, fixing prices distorts the market, prevents innovation and efficiency, and does not benefit consumers or other businesses, except the participants of such illegal conspiracies or conduct.

 

He noted  that since the FCCPA provides stiff penalties for cartels or collusive conduct among competitors, even at association levels, the Commission would not hesitate  to wield the big stick where there is sufficient evidence that a business is participating in any such prohibited conduct.

 

“The FCCPA expressly prohibits any price-fixing or agreement  among undertakings (whether bilaterally or multilaterally) or by undertakings acting in consensus on the platform, or under the aegis of an association to fix prices, coordinate supply or any other  commercially sensitive factors that can limit or substantially prevent  competition or otherwise distort the market,” he stated.

 

The Commission, the FCCPC’s boss disclosed, is opening an investigation, aimed at ensuring that the purported statement by the association is not truly representative or erroneous.

 

He also warned of the Commission’s readiness to wield the big stick in case the statement is found to be true.

 

Irukera  therefore called on consumers to provide the  consumer  regulatory agency useful  and credible information that can  assist its investigation and enforcement.

 

AMMBAN had, recently, announced an increase in its deposit and withdrawal. The new tariff regime stipulates a service charge of N100 for  deposits between N1,000 and N4,900; N200 for N5000 and N10,900; N300 for N11,000 and N20,900; N400 for N21,000 and N30,900; N500 for N31,000 to N40,900; and N600 for N41,000 to N50,000.

For withdrawals, Nigerians will be paying as high as N500 for a transaction between N7,500 and N10,900, contrary to the N200 fee being paid for services within the range, among others.