• Business - Banking & Finance
  • Updated: April 02, 2021

Banks Disconnect MTN Users From Banking Channels On USSD, Bank Apps, Other Banking Channels

Commercial banks have disconnected MTN customers from banking channels which included Unstructured Supplementary Service Data (USSD) and Banking Apps.

On Friday, April 2, 2021, MTN users complained about being unable to recharge their MTN lines using the USSD and other banking channels like the bank apps.

Customers were also denied banking transactions on MTN lines through the USSD, The Punch reported.

According to a source, MTN knows nothing about this but the banks were responsible for this, as they have refused to give formal communication prior to the disconnection.

The source said, “Please note that MTN didn’t cut off customers and has no hand in this. This is strictly the banks acting on their own.

“We woke up this morning to see that MTN customers were cut off from USSD services overnight. This has come as a surprise as there was no formal communication from the banks to their customers prior to their taking this action.”

The source disclosed that MTN had reduced the commission of the banks from average of 3.5 percent to 2.5 percent which predicated the actions of the banks.

READ ALSO: MTN Nigeria Planning To Expand Rural Connectivity

The source maintained that the reduction is the standard because of the volumes compensate for the reduction, adding that the contract with convenience channel partners and aggregators through which they were indirectly connected to the banks allowed this.

The source said, “The banks wrote back to the aggregators to revert back to the old commission, otherwise, they would block MTN airtime in all their channels.

“The channels were blocked midnight leaving our customers stranded. Interesting that the bank Managing Directors met and quickly took a decision. Subscribers to telecommunications are being denied services by the banks even when they have money in their accounts.”

The source added that Zenit bank, which was directly connected to MTN and had 2.70 percent as her earning, was the only bank that has not blocked the telecom company.

However, banks on MOD that had an uplift in their commission from 2.0 per cent to 2.75 per cent have blocked services, according to him. Banks with direct connection to the telco through MOD got a commission uplift.

According to the source, the banks were unwilling to pay the cost of the USSD channel and were okay with cutting off subscribers in order to protect their profits.

The source added, “This only has to do with 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.”

Related Topics

Join our Telegram platform to get news update Join Now
Bada Yusuf Amoo
Bada Yusuf Amoo

Bada's writings focus on government policies, general news, and politics. He is a prolific write...

More From this Author

0 Comment(s)


See this post in...