Banks, MTN Dispute Over USSD, Airtime Fees Deepens

There were strong indications last night that some commercial
banks may have yanked off their USSD, airtime purchase, and other
online services from MTN network due to the disagreement between
the financial institutions and the telecommunication company on the
amount to be charged, Thisday report.

THISDAY gathered that the bank Chief Executive Officers had at a
recent meeting agreed to shut down purchase of MTN services across
all their channels beginning from 11 pm last night until further
notice.

Attempt by THISDAY to purchase airtime from GTBank last night
showed that the commercial bank had removed MTN among the network
its customers could purchase airtime from.

However, Fidelity Bank was still offering the service as of
midnight.

A source close to the banks explained that the disagreement
arose after MTN recently reduced the discount offered to banks on
airtime sales from four per cent to 2.5 per cent, which did not go
down well with banks considering the cost of managing the
infrastructure and other operational costs they incurred.

A top bank official, who pleaded to remain anonymous, said other
banks are expected to comply with the decision of their CEOs from
today.

He disclosed that over 60 per cent of airtime vending by telcos
presently were done electronically through the banks.

The CBN and the NCC, had in a recent communique issued at the
end of a meeting to resolve the disagreement on USSD fee between
the banks and telcos agree that with effect from March 16, 2021,
USSD services for financial transactions conducted at banks and all
CBN- licensed institutions would be a flat rate of N6.98k per
transaction.

This replaced the previous per session billing structure,
ensuring a much cheaper average cost for customers to ensure
financial inclusion.

“To promote transparency, the new USSD charges will be collected
on behalf of MNOs directly from customers’ bank accounts. “Banks
shall not impose additional charges on customers for the use of
USSD channel. “A settlement plan for outstanding payments incurred
for USSD services previously rendered by the MNOs is being worked
out by all parties in a bid to ensure that the matter is fully
resolved,” the communiqué explained.

There were strong indications last night that some commercial
banks may have yanked off their USSD, airtime purchase, and other
online services from MTN network due to the disagreement between
the financial institutions and the telecommunication company on the
amount to be charged, Thisday report.

THISDAY gathered that the bank Chief Executive Officers had at a
recent meeting agreed to shut down purchase of MTN services across
all their channels beginning from 11 pm last night until further
notice.

Attempt by THISDAY to purchase airtime from GTBank last night
showed that the commercial bank had removed MTN among the network
its customers could purchase airtime from.

However, Fidelity Bank was still offering the service as of
midnight.

A source close to the banks explained that the disagreement
arose after MTN recently reduced the discount offered to banks on
airtime sales from four per cent to 2.5 per cent, which did not go
down well with banks considering the cost of managing the
infrastructure and other operational costs they incurred.

A top bank official, who pleaded to remain anonymous, said other
banks are expected to comply with the decision of their CEOs from
today.

He disclosed that over 60 per cent of airtime vending by telcos
presently were done electronically through the banks.

The CBN and the NCC, had in a recent communique issued at the
end of a meeting to resolve the disagreement on USSD fee between
the banks and telcos agree that with effect from March 16, 2021,
USSD services for financial transactions conducted at banks and all
CBN- licensed institutions would be a flat rate of N6.98k per
transaction.

This replaced the previous per session billing structure,
ensuring a much cheaper average cost for customers to ensure
financial inclusion.

“To promote transparency, the new USSD charges will be collected
on behalf of MNOs directly from customers’ bank accounts. “Banks
shall not impose additional charges on customers for the use of
USSD channel. “A settlement plan for outstanding payments incurred
for USSD services previously rendered by the MNOs is being worked
out by all parties in a bid to ensure that the matter is fully
resolved,” the communiqué explained.