Newswatch Nigeria can report that Banks have now reconnected MTN Nigeria customers ealier denied access to Unstructured Supplementary Service Data (USSD) for mobile banking services.
In a letter seen, Karl Toriola Managing Director and Chief Executive Officer of MTN Nigeria, announced the decision to revert discount offered to banks on airtime sales to 4.5 percent commission to resolve the transaction issue between the Telcos and the commercial banks.
Recall that banks on Friday blocked MTN MTN customers from USDD transactions leaving millions of subscribers frustrated as they were unable to recharge airtime via the platform amid the Easter celebrations.
MTN, with about 77 million subscribers, making up about 45 per cent of the total telecommunication market share in Nigeria, is arguably the largest telecommunication operator in the country.
The blockade occurred when the telco reduced the banks’ commission from an average of 3.5 per cent to 2.5 per cent. The banks had written MTN to revert to the old commission, otherwise, they would block MTN airtime in all their channels.
The banks, except Zenith Bank which was connected directly to MTN, subsequently blocked MTN from their banking channels, leaving millions of customers stranded as they were unable to recharge virtually.
In the letter MTN agreed that the banks revert to the status quo 4.5% commission while a meeting for the reduction of the charges will hold on Tuesday.
The letter dated April 3, 2021 was signed by MTN Chief Executive Officer, Karl Toriola, and it was addressed to the Chairman of Body of Banks’ CEOs, Herbert Wigwe.
Toriola in the letter said, “In an attempt to resolve the current USSD recharge impasse, given the intervention from our regulators, we hereby agree that the banks revert to the status quo of 4.5% commission.
“However, the banks and MTN Communications Nigeria Plc shall sit to agree on various options that will result in the reduction in the costs on 6th of April 2021.”
The banks subsequently unblocked MTN customers from their banking channels, thus enabling them to recharge virtually via USSD and other channels linked to their accounts.
