The Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) is planning to move against Point of Sale (PoS) agents who are not legally registered also known as ‘umbrella agents’.
The PoS market is currently seeing significant growth in terms of transaction volume and value. Data from the Nigerian Interbank Settlement System (NIBSS) shows that Nigerians spent a total of N6.05 trillion through PoS in the last nine months of 2022, representing nearly the total amount (N6.4 trillion) recorded in the entire 2021. The volume of transactions grew by 14 percent year-on-year to 100.4 million in September 2022.
Olojo Victor, President of AMMBAN says there are 1.4 million registered agents under the association presently. This number is expected to grow in the coming months.
“Most significant is the quantum leap in the aggregate number of new mobile money and bank agents we have in the market space as of today. He also noted that the registered PoS agents have reduced the rates of unemployment in the country because it has created job opportunities and boosted the economy.
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However, the activities of illegal agents continue to undermine the growth of the industry. According to the association, the proliferation of fraud incidents can be linked to these unregistered agents.
To tackle the umbrella agents, Victor says it is collaborating with the Central Bank of Nigeria (CBN), the Shared Agent Network Expansion Facility (SANEF), Lagos State Residents Registration Agency (LASERA), and operators to ensure only registered agents are allowed to operate in the country.
The agents are still bogged down by challenges such as the cost of running a business, delays in the reversal of failed transactions, network issues, bank customer problems, insecurity, and poor power supply, among others.
Olawale Ajai, Head, Department of Strategy, Lagos Business School, also noted that the agency banking business is also faced with security risks which can be reduced by agents not carrying too much cash at once.
