A 50% increase in telecom service tariffs in Nigeria could lead Point-of-Sale (POS) operators to raise their service charges.
Newsonspot reports that this is because telecom services are essential for their operations, and higher costs may force them to adjust prices to stay profitable. This change might affect customers who rely on POS services for quick cash withdrawals and transfers.
The Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) disclosed this development, citing the impact of the tariff hike on their operations.
Ogungbayi Ganiyu, AMMBAN’s National Public Relations Officer, explained that mobile money agents rely heavily on telecom services, particularly data, for their transactions.
“The telecom tariff hike will impact the operations of our members. I am afraid this may also have a multiplier effect on service charges,” Ganiyu said. “We have not sat down and looked at the latest tariff hike,” he stated, indicating that further deliberations would determine the next steps.
The National Association of Telecoms Subscribers (NATCOMS) has already vowed to challenge the Federal Government in court over the steep tariff increase, which marks the first adjustment in telecom charges since 2013.
With telecom services being the backbone of POS operations, the new tariff hike could create widespread implications for mobile money agents and their customers nationwide.
