POS Operators May Increase Service Fees Following 50% Telecoms Tariff Hike

Point-of-sale (POS) operators in Nigeria are considering raising their service charges due to the recent 50% increase in telecommunications service tariffs approved by the Federal Government.

Ogungbayi Ganiyu, the National Public Relations Officer of the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN), highlighted the potential impact of the tariff hike on POS operations, as mobile money agents heavily rely on telecom services, especially data, for their transactions.

Ganiyu explained that the increased telecom tariffs would place significant strain on the operations of POS operators, who may be forced to adjust their service fees. “The telecom tariff hike will impact the operations of our members. I am afraid this may also have a multiplier effect on service charges,” he said.

Although POS operators have not yet formally discussed the tariff hike’s full implications, Ganiyu acknowledged that they may be compelled to pass on the added costs to customers in order to maintain the viability of their businesses.

“We have not sat down and looked at the latest tariff hike,” Ganiyu remarked, indicating that further discussions will take place before any decision is made on fee adjustments.

Meanwhile, the National Association of Telecoms Subscribers (NATCOMS) has announced its intention to challenge the 50% tariff increase in court, with members arguing that the hike is detrimental to both telecom consumers and related services like POS operations.