Welcome, Guest: Join Nairaland / LOGIN! / Trending / Recent / New
Stats: 2,658,053 members, 6,239,377 topics. Date: Monday, 12 April 2021 at 09:25 PM

FG Intervenes As MTN, Banks Trade Blame Over Shutdown - Phones - Nairaland

Nairaland Forum / Science/Technology / Phones / FG Intervenes As MTN, Banks Trade Blame Over Shutdown (26593 Views)

Leaked Memo Shows Banks Asked Telcos To Charge For USSD (pics) / Services And Applications Google Has Shutdown In 2019 / Still On It.... A Lady Complain As MTN Drains Her Data.. Without Reason(photos) (2) (3) (4)

(1) (2) (3) (Reply) (Go Down)

FG Intervenes As MTN, Banks Trade Blame Over Shutdown by Islie: 7:45am On Apr 03
Both sides defend their decisions as customers pay for the standoff.
By Oge Udegbunam
The Nigerian government says it has intervened in a feud between Nigerian banks and MTN, which left millions of phone users unable to buy airtime Friday.

Talks to resolve a row over the sharing of fees on airtime sales between the two sides “reached an advanced stage” for suspended services to be restored, the Minister of Communication and Digital Economy, Isa Pantami, announced on Twitter late Friday.

“On the fallout between @MTNNG and some banks on USSD services today, I engaged with both regulators, the Governor of @cenbank and EVC @NgComCommission. We have reached an advanced stage of resolving the issues, for the services to be restored to our citizens. Many thanks,” he said.

Banks removed the telecom giant from their platforms, disallowing MTN users from accessing their bank accounts through the USSD infrastructure to recharge their phones.

Subscribers expressed their frustration online, as MTN advised its customers to seek alternative ways of recharging without explaining what the problem was.

A top industry official who asked not to be named told PREMIUM TIMES the banks cut off the service to protect their profits. He described the move as “tyrannical”.

“Banks have tried to remove the cost of using USSD, but are willing to cut off subscribers to protect their own fees earned through the channel,” the source said.

“This only has to do with the preservation of bank profits, which are already substantial and growing despite the wider economic conditions.”


Banks blame MTN

Bank officials who asked not to be named said they moved against MTN to curb its “excesses”.

Bank sources said MTN slashed the percentage of airtime fees that go to the banks, and refused to backtrack despite their protests.

“MTN recently reduced the discount offered to banks on airtime sales from 4.5 percent to 2.5 per cent and this did not go down well with banks considering the cost of managing the infrastructures and servicing these customers, while MTN continues to make huge spreads,” the source said.

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

A source said other phone networks pay banks more than what MTN pays, yet, have not changed their rates.


MTN has done ‘nothing wrong’

MTN insiders, who also requested to speak anonymously, defended the network’s decision.

“We did a commission optimization 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.

“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. Interesting that the bank MDs met and quickly took a decision. This references our conversation around 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;

“Zenith Bank is connected directly to MTN – their earnings is at 2.70%. They are happy and have not blocked us.

“Banks on ‘MTN On Demand’ had an uplift in their commission from 2.0% to 2.75% yet have blocked services;

“Banks with direct connection to us through ‘MTN On Demand’ got a commission uplift.”

Another source claimed that in “advanced countries, commissions for the same services are between 0.5 to 0.75%. Even at 2.5%”.


Lingering feud over USSD

The Central Bank of Nigeria and the Nigerian Communications Commission on March 15 intervened to resolve a similar standoff between banks and telcos 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 N42 billion and threatened to suspend service.

From March 16, subscribers paid N6.98 each time they used the USSD for banking transactions. That arrangement has angered customers and alarmed advocates of financial inclusion.

The regulators claimed the billing would “ensure a much cheaper average cost for customers to enhance financial inclusion”.

A PREMIUM TIMES report showed the banks and telcos would realise about N564 million in a year from the new mobile banking fee.


https://www.premiumtimesng.com/news/headlines/452957-nigerian-govt-intervenes-as-mtn-banks-trade-blame-over-shutdown.html

3 Likes 1 Share

Re: FG Intervenes As MTN, Banks Trade Blame Over Shutdown by Soolmus: 7:47am On Apr 03
Two legal thieves and extortionists

Banks and Telcos are criminals

107 Likes 5 Shares

Re: FG Intervenes As MTN, Banks Trade Blame Over Shutdown by Badabada(m): 7:49am On Apr 03
Everything for this country just dey zigzag

13 Likes

Re: FG Intervenes As MTN, Banks Trade Blame Over Shutdown by thelinguist: 7:51am On Apr 03
Only applies to old generation banks, standard chartered still recharges MTN today
Re: FG Intervenes As MTN, Banks Trade Blame Over Shutdown by seunmsg(m): 7:53am On Apr 03
MTN and the banks are mad.

1 Like

Re: FG Intervenes As MTN, Banks Trade Blame Over Shutdown by Joysticks(m): 8:01am On Apr 03
I have used all the network in Nigeria except MTN.

3 Likes

Re: FG Intervenes As MTN, Banks Trade Blame Over Shutdown by falcon01: 8:04am On Apr 03
We are just pawns in this game! I switched to airtel.. besides My Mtn is just for receiving calls from work and Other general stuff.

2 Likes

Re: FG Intervenes As MTN, Banks Trade Blame Over Shutdown by houseontherock: 8:11am On Apr 03
Blame it all on our government who have continuously failed to protect consumers.
BTW, are they charging N6.98 for checking account balance? That's about the only time I ever see USSD code on my phone sad

3 Likes

Re: FG Intervenes As MTN, Banks Trade Blame Over Shutdown by gambia(m): 8:16am On Apr 03
The two mega thieves at war.

8 Likes

Re: FG Intervenes As MTN, Banks Trade Blame Over Shutdown by FxTradeMT4x5: 8:22am On Apr 03
.
Re: FG Intervenes As MTN, Banks Trade Blame Over Shutdown by Fistop: 8:22am On Apr 03
See where Seun is stashing away our funds grin grin grin grin

22 Likes

Re: FG Intervenes As MTN, Banks Trade Blame Over Shutdown by GeneralPula: 8:23am On Apr 03
.
Re: FG Intervenes As MTN, Banks Trade Blame Over Shutdown by PAWG(m): 8:24am On Apr 03
MTN are only fighting for their money, banks are ripping them off, it should be a partnership, you chop, I chop

1 Like

Re: FG Intervenes As MTN, Banks Trade Blame Over Shutdown by Tvoice: 8:24am On Apr 03
Make FG liv dem , na body dey catch dem na , after all both parties don too get customers na . we no blame dem
Re: FG Intervenes As MTN, Banks Trade Blame Over Shutdown by Nobody: 8:26am On Apr 03
Soolmus:
Two legal thieves and extortionists

Banks and Telcos are criminals

They use the profits to provide jobs directly and indirectly for all of us

So accept their prescence or support Nigeria becoming a communist country where everything including your life is controlled by the State

2 Likes 1 Share

Re: FG Intervenes As MTN, Banks Trade Blame Over Shutdown by MASTAkiLLAh(m): 8:27am On Apr 03
The banks are thieves
Re: FG Intervenes As MTN, Banks Trade Blame Over Shutdown by Barbsamiin: 8:28am On Apr 03
will help keep our savings grin

1 Like

Re: FG Intervenes As MTN, Banks Trade Blame Over Shutdown by Topmaike007(m): 8:28am On Apr 03
Ole
Re: FG Intervenes As MTN, Banks Trade Blame Over Shutdown by RomanGreen: 8:29am On Apr 03
Nigerian banks as usual feeling cocky, time shall tell who will outlive each other, traditional Nigerian banks who has refused to innovate or Telcos about to embrace Fintech that will push Naija banks out completely.

1 Like

Re: FG Intervenes As MTN, Banks Trade Blame Over Shutdown by Nobody: 8:29am On Apr 03
gambia:
The two mega thieves at war.

Good, so let government close all of them so that we can stop the stealing

Don't you think so?

2 Likes

Re: FG Intervenes As MTN, Banks Trade Blame Over Shutdown by DecentFriend(f): 8:30am On Apr 03
They better do the needful.
Re: FG Intervenes As MTN, Banks Trade Blame Over Shutdown by mamaafrik(m): 8:30am On Apr 03
See as glo and Airtel just they smile,the head of Mtn accounting department is a greedy smoker,his marriage partner go don suffer ehnnnn
Re: FG Intervenes As MTN, Banks Trade Blame Over Shutdown by Esseite: 8:31am On Apr 03
Hmmm
Re: FG Intervenes As MTN, Banks Trade Blame Over Shutdown by culf: 8:31am On Apr 03
They are fighting for themselves, who then fight for the citizens??
Nigeria my Country!!
Re: FG Intervenes As MTN, Banks Trade Blame Over Shutdown by seunjungle1(m): 8:31am On Apr 03
Both the banks and telecos are very stvpid.
All the said percentages are raking from our heads...now sharing formula is generating problem between two thieves.

It is govt I have to blame for this, they naked we citizens into your hands.

4 Likes

Re: FG Intervenes As MTN, Banks Trade Blame Over Shutdown by Nobody: 8:32am On Apr 03
MASTAkiLLAh:
The banks are thieves

Good, get your senator to pass a law declaring every bank closed down and the money confiscated and shared by Nigerians

So that we can go back to keeping money in our houses where cockroaches and other vermin can have a free day munching and munching

Maybe you can provide jobs for all the sacked bankworkers and their dependents too

6 Likes

Re: FG Intervenes As MTN, Banks Trade Blame Over Shutdown by OmovuduTheBeast(f): 8:32am On Apr 03
smiley
Re: FG Intervenes As MTN, Banks Trade Blame Over Shutdown by Seniorwriter(m): 8:33am On Apr 03
Bad Policies from a CLUELESS bunch brought about this bruhaha..
Deep Quote:
When the Head is sick the body will also fall sick.

Proactivity Leads To Productivity !!!
@Seniorwriter

1 Like

Re: FG Intervenes As MTN, Banks Trade Blame Over Shutdown by Leemekzy(m): 8:33am On Apr 03
thelinguist:
Only applies to old generation banks, standard chartered still recharges MTN today
because its a south african company just like mtn.

1 Like

(1) (2) (3) (Reply)

Instagram, Facebook And Whatsapp Users Fume As Services Go Down Again / MTN Data Modem Now N8,500 / Is The Syinix 55 Inch TVs Worth It?

(Go Up)

Sections: politics (1) business autos (1) jobs (1) career education (1) romance computers phones travel sports fashion health
religion celebs tv-movies music-radio literature webmasters programming techmarket

Links: (1) (2) (3) (4) (5) (6) (7) (8) (9) (10)

Nairaland - Copyright © 2005 - 2021 Oluwaseun Osewa. All rights reserved. See How To Advertise. 79
Disclaimer: Every Nairaland member is solely responsible for anything that he/she posts or uploads on Nairaland.