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Point-of-sale operators across Nigeria say they may suspend services nationwide over alleged anti-competitive practices. The action could disrupt cashless transactions and e-banking services used by millions.
The Association of Point of Sale Service Providers warned it will stop processing Verve card transactions if the Central Bank of Nigeria and the Federal Competition and Consumer Protection Commission do not act fast. The group accuses two companies of enforcing an exclusivity deal that violates CBN rules and the FCCPC Act 2018.
In a statement signed by Yomi Idowu, the association’s communications consultant, the group said it filed an official complaint online and with regulators. It described the companies’ “persistent unlawful decisions” as harmful to Nigeria’s payment system.
*What the Association Demands*
The association represents CBN-licensed acquirers, processors, and switches. It said it has no choice but to halt Verve card acceptance, processing, and switching unless regulators intervene.
According to the letter quoted by the Guardian, the operators claim the firms’ actions “undermine the integrity of Nigeria’s payments ecosystem, weaken participating institutions, and breach several regulatory requirements.”
*4 Main Allegations by POS Operators*
1. *Monopoly on Verve processing*: Keeping exclusive control over Verve transactions, which limits competition.
2. *Abuse of market dominance*: Allegedly violating the FCCPC Act 2018 and CBN guidelines on electronic payment channels.
3. *Excessive fees*: Charging scheme fees higher than the acquirer’s portion of the regulated Merchant Service Commission, against CBN rules.
4. *Unauthorized debits*: Making illegal deductions from settlement accounts of acquirers, processors, and switches without approval.
The association noted other card schemes have dropped exclusivity to comply with CBN regulations, making these practices an outlier.
*Separate CBN Move on Bank Charges*
In related news, the CBN said it will review transaction fees and “multiple” debit alerts sent by commercial banks. The review follows customer complaints about confusing alerts and repeated deductions.
POS Agents Threaten Nationwide Service Halt, Ask CBN to Step In : By Clem Aguiyi
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