POS CHARGE: FCCPC to Meet CBN

In News 2019-11-04 15:28:24
POS CHARGE: FCCPC to Meet CBN
POS CHARGE: FCCPC to Meet CBN

By Dipo Omoware

 

The Director General and CEO of the Federal Competition and Customer Protection Commission (FCCPC), Mr Babatunde Irukera has said the FCCPC “strongly disagrees with passing every possible cost of doing business to consumers.”

 

Irukera said this in the light of the N50 charge some merchants introduced for point of sales (POS) transactions at service points following a Central Bank of Nigeria directive to banks, processors and switches.

 

The CBN in a circular released on September 17, 2019, had authorised banks to unbundle merchant settlement amounts and charge applicable taxes and duties on individual taxes and duties on individual transactions.

 

Speaking on Nigeria Info’s Money, Business and Economy, the DG of the commission said the “back office activities or service level agreement that exists between service providers and their payment systems” do not concern consumers.

 

“The consumers are not part of the understanding between the merchant and their banks or their payment systems and that’s fine, they really shouldn’t be.

 

“You choose your mode of payment, you should choose what vendor you want, they are your agent, not the consumer’s agent and so because of that the consumer should not be concerned.”

 

Irukera added that the only addition to prices of goods and services in Nigeria is “the legitimate tax and in Nigeria, taxes are calculated inclusive.”

 

He stated that the leadership of the FCCPC and the CBN would be meeting tomorrow to clarify many things including “what merchant fees are, what the cost of doing business for the merchants are and the enforcement capabilities of the two organisations.”