The recent announcements of an increase in service charge fees by a few of our state chapters have elicited various responses.
The Association had acknowledged the role of the CBN as the market regulator and emphasize that AMMBAN’s efforts are not aimed at changing the prices of transactions fixed by the CBN for the operators. We have no business with that.
The industry’s successes can largely be attributed to the Mobile Money and bank agents who, over the past decade, have dedicated their efforts and resources to co-building a financial service industry that Nigerians can truly embrace.
It is important to note that there are two aspects of agency banking: the regulatory part overseen by the CBN and the Small and Medium Enterprises (SMEs) side. As an association, AMMBAN is not a regulator and has no intention of usurping such powers.
However, the SMEs side of the industry, which includes the agents, often bears the cost of operations, including the standard rates set by the CBN, even though they are registered under a provider, sometimes at a fee.
The recent action, in direct response to the current economic realities in the country, aims to ensure that agents can continue to stay in business. It is essential to remember that our services are not subsidized by the CBN or any of the operators. The burden of the current economic reality lies squarely on the shoulders of each and every agent.
Today, the average agent faces numerous challenges, including surging inflation, overhead costs (such as source of funding, rent, staff salaries, POS paper costs, data subscriptions, security, multiple taxation/levies), and various risks such as loss of funds through licensed operators’ channels, fraud, and robbery.
One would expect the operators, whose existence is guaranteed only by the active participation of agents, to show some level of concern for the plight of these agents who are currently struggling under the harsh economic conditions across the country.
Instead, they are being thrown under the bus, asked to soldier on without any efforts to mitigate the effects this situation has on them.
In conclusion, our position remains noble. The current economic reality in the country has negatively impacted the “Cost to serve” for agents.
The agency business has become unprofitable for the majority of agents. We implore the CBN and other relevant stakeholders to bear in mind that while they remain in their boardrooms and offices, formulating policies, over 1.8 million mobile money and bank agents across the country are on the streets, serving Nigerians with little or no support, despite the overwhelming challenges they face.
As an association, we understand that there is no Mobile Money and Agency Banking without agents. Therefore, they should not be treated as if their lives do not matter.they should not be treated as if their lives do not matter.