Nigeria’s Association of Mobile Money and Bank Agents has revealed why it increased service charges.

According to the operators, the action was done to ensure Point of Sale operators survive and remain in business.

The operators added the move was a direct response to the current economic realities in the country.

Going further, the association, in a statement made to newsmen, stressed that surging inflation has negatively impacted the “Cost to serve”, adding that agency business has become unprofitable for its agents.

The statement read partly:

 “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 the CBN or operators do not subsidize our services. The burden of the current economic reality lies squarely on the shoulders of every agent.

“Today, the average agent faces numerous challenges, including surging inflation, overhead costs (such as the 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.”