A feud between Nigerian banks and MTN left millions of subscribers unable to recharge their phones using the USSD services on Friday. That was after banks shut off the telecoms firm over fees charged for the service.
MTN advised its subscribers to seek alternative means of recharging their phones without informing them what the problem was.
“Dear Customer, our bank recharge channels are currently unavailable. Kindly recharge using physical cards. We apologise for the inconvenience. Thank you,” one message read.
Another read: “Please be informed that some of MyCustomers may not be able to purchase airtime and data recharges via banks including MOD and myMTN App.
“Please pacify MyCustomers and educate them to use MTNTopit, MoMo channels, as well as the debit card options on MOD or myMTN App.”
Why the block?
Phone users expressed their frustrations online as the outage lasted throughout Friday.
A top industry official who asked not to be named told PREMIUM TIMES that 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.”
“The government needs to step in and deal with this once and for all. Nigerian banks need to stop their tyrannical posture. USSD has not been cut by MTN as far as I know,” the official said.
“Note that with their action, the banks are denying customers from accessing their money to make legitimate purchases/transactions.
“Banks are focused on bullying everyone to maximize their revenues. The banks did not send a formal communication to customers or to MTN before taking this action.”
MTN gets first hit
PREMIUM TIMES understands that there is a row between the banks and telcos over what banks should earn from every recharge.
A source said the telcos sought to reduce the banks’ share by almost half, a decision the banks kicked against.
The banks argue that since they maintain the infrastructure through which the recharges are done, they deserve better.
In protest, the banks decided to remove MTN services from their infrastructure as a way of signalling to the telcos that they could bark and bite.
But another industry insider told PREMIUM TIMES, “The 42 billion they are owing us (MTN and others), they don’t want to pay.
“Rather, they want to surreptitiously factor it into a new price regime so that customers will unknowingly help them pay what they had already billed them. Of course, we refused, which is why they are fighting us now.
“Meanwhile the overnight suspension of airtime sales by some of the banks is not restricted to USSD channels alone, but includes airtime purchases through all banking channels – bank apps, bank USSD codes, even debit cards.”
USSD feud with MTN and others
The Central Bank of Nigeria and the Nigerian Communications Commission on March 15 settled a row between banks and telcos over fees by imposing a new charge for the banks’ short-code service.
Known as USSD, it allows millions of Nigerians to use their mobile phones to access financial services daily.
The Association of Licensed Telecommunication Operators of Nigeria (ALTON) said banks owed its members N42 billion and threatened to suspend service.
From March 16, subscribers paid N6.98 each time they use 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.
MTN spokesperson, Funso Aina, did not reply to calls or messages sent to him through text and WhatsApp.
The spokespersons of Access Bank and United Bank of Africa, Amechi Okobi and Ramon Nasir, did not respond to calls and text messages.
BBNaija: Nini gives reasons why she turned down Yousef’s .
BBNaija ; Nini has given reasons why she turned down Yousef’s love interest in her. Yousef had revealed that...
Videos from Bobrisky’s 30th birthday party
Popular crossdresser, Bobrisky held his 30th birthday party yesterday August 31, in Lagos. Highlights from the birthday party include Fuji...
SIJUADE RAJI TAOHEED (ZOBO): A VISIONARY LEADER WITH AN UNCOMMON AMELIORATION AGENDA
SIJUADE RAJI TAOHEED (ZOBO): A VISIONARY LEADER WITH AN UNCOMMON AMELIORATION AGENDA _”Between stimulus and response, there is a space....
Eid Il Fitr: FPE Alumni President Felicitates With Muslims
Eid Il Fitr: FPE Alumni President Felicitates With Muslims May 13, 2021 The National President of Federal Polytechnic...
Face Of Osun State 2021 Unveil Winners, Releases Stunning Photos
A beautiful Student of Osun state, Obafemi Awolowo University osun state, Queen Bakare Hasiat who emerged the winner Face...