Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News

      MultiChoice: We can’t afford to compete without help

      17 July 2025

      The internet’s weakest link is under the ocean

      17 July 2025

      AI misuse shakes South African courtrooms

      17 July 2025

      Boom gates go hi-tech at South African malls

      17 July 2025

      Megayachts and mansions: the lavish life of 80-year-old Larry Ellison

      17 July 2025
    • World

      Grok 4 arrives with bold claims and fresh controversy

      10 July 2025

      Samsung’s bet on folding phones faces major test

      10 July 2025

      Bitcoin pushes higher into record territory

      10 July 2025

      OpenAI to launch web browser in direct challenge to Google Chrome

      10 July 2025

      Cupertino vs Brussels: Apple challenges Big Tech crackdown

      7 July 2025
    • In-depth

      The 1940s visionary who imagined the Information Age

      14 July 2025

      MultiChoice is working on a wholesale overhaul of DStv

      10 July 2025

      Siemens is battling Big Tech for AI supremacy in factories

      24 June 2025

      The algorithm will sing now: why musicians should be worried about AI

      20 June 2025

      Meta bets $72-billion on AI – and investors love it

      17 June 2025
    • TCS

      TCS+ | Samsung unveils significant new safety feature for Galaxy A-series phones

      16 July 2025

      TCS+ | MVNX on the opportunities in South Africa’s booming MVNO market

      11 July 2025

      TCS | Connecting Saffas – Renier Lombard on The Lekker Network

      7 July 2025

      TechCentral Nexus S0E4: Takealot’s big Post Office jobs plan

      4 July 2025

      TCS | Tech, townships and tenacity: Spar’s plan to win with Spar2U

      3 July 2025
    • Opinion

      A smarter approach to digital transformation in ICT distribution

      15 July 2025

      In defence of equity alternatives for BEE

      30 June 2025

      E-commerce in ICT distribution: enabler or disruptor?

      30 June 2025

      South Africa pioneered drone laws a decade ago – now it must catch up

      17 June 2025

      AI and the future of ICT distribution

      16 June 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Wipro
      • Workday
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » News » MTN Nigeria airtime sales resume as tensions with banks simmer

    MTN Nigeria airtime sales resume as tensions with banks simmer

    By Agency Staff5 April 2021
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    MTN Nigeria resumed airtime sales on banking channels Sunday after banks lifted a ban on the telecommunications operator following an intervention by the government.

    Nigerian banks on Friday barred the Johannesburg-based firm from using their USSD platform to conduct business as both sides scuffled over airtime sales fees.

    The three-day-long feud started after MTN, which has the biggest share of Nigeria’s telecoms market, reduced the rate it pays banks for each transaction from 4.5% to 2.5%.

    The lenders removed the telecoms giant from their platforms, disallowing MTN users from accessing their bank accounts to recharge their phones

    The lenders removed the telecoms giant from their platforms, disallowing MTN users from accessing their bank accounts to recharge their phones.

    As subscribers expressed their frustration, MTN advised them to seek alternative ways of recharging. On Saturday, the firm announced alternative channels for its airtime sales, including a host of fintech platforms led by Flutterwave.

    Service resumed on Sunday afternoon after MTN agreed to revert to “status quo” at the request of the Nigerian Communications Commission and the Central Bank of Nigeria (CBN) while a permanent solution was worked out.

    Intervention

    “The CBN governor’s intervention is in line with our core values. We acceded to his request and that of our minister. We will continue to live our values that ‘everyone deserves the benefits of a modern connected life’,” MTN Nigeria CEO Carl Toriola said on Sunday.

    The operator said its pursuit has always found motivation in leveraging business to the fullest in the interest of customers and the Nigerian market. “MTN’s intention has always been geared towards business optimisation to the benefit of our customers and indeed the country,” Toriola said.

    “This is evidenced by the fact that through the USSD imbroglio, we never denied access to our customers. In the current case, customers have been denied access to services by the banks despite having monies in their accounts to purchase those services. MTN will naturally do all it can to minimise customer pain. It is not just about revenue for us. The good of our customers influences every decision we take.”

    Banks said earlier they were responding to check MTN’s “excesses”.

    “The truth is that if MTN gets away with this, banks should expect further reductions if not checked. Over 60% of airtime vending by telcos today are done electronically through the banks,” a source said.

    They argued that the percentage MTN pays is lower than that of other operators, but MTN insiders, who also requested to speak anonymously, defended the network’s decision.

    “We did a commission optimisation which saw the banks commission reducing from an average of 3.5% to 2.5%. This reduction is standard because the volumes compensate for the reduction,” one source said.

    Zenith Bank is connected directly to MTN – their earnings is at 2.7%. They are happy and have not blocked us

    “We reviewed our commissions downwards. Most of the banks are not connected to us directly but through a third party — our convenience channel partners and aggregators.

    “Communication was shared with the partners, who in turn wrote to the banks (the banks here are agents to the partner). Our contract with the partners allows us to do this.

    “The channels were blocked yesterday, midnight, leaving our customers stranded. It is interesting that the bank MDs met and quickly took a decision. This references our conversation around the NCC standing in the gap for the industry. Subscribers to telecommunications are being denied services by the banks even when they have money in their accounts.

    ‘Commission uplift’

    “Zenith Bank is connected directly to MTN — their earnings is at 2.7%. They are happy and have not blocked us. Banks on ‘MTN On Demand’ had an uplift in their commission from 2% to 2.75%, yet have blocked services. Banks with direct connection to us through ‘MTN On Demand’ got a commission uplift.”

    The CBN and the NCC on 15 March intervened to resolve a similar standoff between banks and operators over USSD fees. The USSD allows subscribers to use their mobile phones to access financial services daily.

    The Association of Licensed Telecommunication Operators of Nigeria (Alton) had said banks owed its members ₦42-billion and threatened to suspend service.

    From 16 March, subscribers paid ₦6.98 each time they used the USSD for banking transactions. That arrangement has angered customers and alarmed advocates of financial inclusion.  — (c) 2021, AllAfrica Global Media



    MTN MTN Nigeria
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleMore trouble for MTN in Nigeria as banks block subscribers
    Next Article How Eran Eyal hoodwinked investors, taking them for millions

    Related Posts

    Mobile money lifts Africa savings to decade high

    17 July 2025

    MTN Group appoints new chief enterprise officer

    16 July 2025

    South Africa’s telcos battle to monetise 5G as 4G suffices for most

    15 July 2025
    Company News

    SA businesses embrace gen AI – but strategy and skills are lagging

    17 July 2025

    Ransomware in South Africa: the human factor behind the growing crisis

    16 July 2025

    Mental wellness at scale: how Mac fuels October Health’s mission

    15 July 2025
    Opinion

    A smarter approach to digital transformation in ICT distribution

    15 July 2025

    In defence of equity alternatives for BEE

    30 June 2025

    E-commerce in ICT distribution: enabler or disruptor?

    30 June 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2025 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.