Greed To Maximize Profits Lands MTN In Trouble With Nigerian Banks.

... How The Telcoms Company Was Suspended from USSD Platform

There is confusion among SMEs and customers in Nigeria following inability to recharge MTN lines with airtime and data via banks.

In a recent policy flip, the South African firm did not only compel SMEs, who aggregate data and airtime sales, to push only MTN platforms, it also cut down commissions on sales.

In a letter to its partners, titled NOTIFICATION OF REVISED DISCOUNT STRUCTURE, made available to Vanguard, the telecommunication giant explained the reduction in discount with effect from 1st of April.



A source said in spite of inconvenience to millions of Nigerian, MTN told its partners to “pacify customers and educate them to use MTNToplt, MoMo channels, as well as the debit card options on MOD or myMTN App.”

The fresh move is coming just after its hiking of transfer charges on USSD and a year after the Nigerian government pardoned it over $2 billion dodged taxes.

An MTN user said the signal he gets each time he tries to recharge his phone on one of the banks’ app was “Unavailale”.



An SMS sent to users of the network reads: “Dear customers, our bank recharge channels are currently unavailable, kindly recharge using physical cards. We apologise for the inconvenience. Thank you.”

Another, a web master, who tried to buy data, said Airtel’s platform kept popping up.

Stakeholders fear that the recent moves by MTN will ruin SMEs in the country, given the previous policies that are making it difficult for business owners to break even.



One said MTN had long sought to monopolise the telco space, almost paralysed Nigeria’s nascent renewable energy sector with its battery product.



“Meanwhile, even South Africans don’t seem to trust MTN; for example, at the end of 2019, MTN’s revenue grew by 12.6 per cent in Nigeria and 22.9% in Ghana, but in South Africa, revenue only grew by 0.4%,” some stakeholders noted.



The biggest casualties of MTN’s aggressive exploitation of Nigeria are not just the SMEs who are seeing their commissions constantly cut down till they die out of business; ordinary Nigerians bear the biggest brunt, without even knowing it.

“Nigeria has among the most expensive mobile data prices in the world, more than 10 times what Indians pay.

“Telcos like MTN take advantage of their massive size to keep the price of data high so that they can keep extracting money from unsuspecting citizens and a hapless country, all the while repatriating all the money to South Africa and not paying their fair share in taxes.



“It is yet to be known if for once, the Nigerian government and even big private institutions will stand up and stay strong to this drowning of Nigerian SMEs and daylight robbery of the country,” a statement noted.

This is condemning need to change all my things from mtn to glo

This blame game on MTN is pure witch hunting. Yes their parent company is South African but the MTN operating in Nigeria is a subsidiary of that called MTN Nigeria. It's even a publicly traded company on the NSE where you can buy shares. It employs majorly Nigerians.
The whole issue is that banks charge you for using USSD options to recharge then remit a percentage of that amount to get telecom companies. But banks as usual with anything Nigerian defaulted with that remittances so the telecom companies threatened to stop using USSD options. The Minister of communication and other stakeholders are currently intervening on the matter.
Yesterday even Airtel won't recharge through my bank USSD. I had to go to Airtel USSD option *444#. Chose the option recharge from bank. They will send you a USSD through sms where you then input based on the bank you chose and recharge will be available. The bank will charge you 20naira for that transaction which I think goes to the telecom company direct with the bank taking their own percentage unlike before.
So it's not only MTN.
Shoprite left the Nigerian market but there's still Shoprite in other African countries. Guess who will be affected if the new company that bought Shoprite shares decide to trim down their workforce? Nope not South African, Nigerians.
Boycott MTN Nigeria and when they are not making profit, guess what? they will exit the Nigerian market and it's Nigerians that will take majority of the heat.
You say MTN are exploiting Nigerians, now imagine how much fuels the burn in a day to give constant network communication. Even when you don't have light in your area for months, you still expect to pick up your phone make and call and it will connect. Browse the net and other stuff. Do you guys think base stations functions without electricity
Hate a company because it's parent company is not Nigerian but do that with a legitimate reason like not employing Nigerian in its workforce but not on some flimsy excuses.