Banks cut-off Telco from MTN Nigeria payment platforms

MTN resumed airtime sales on banking channels Sunday after banks lifted a ban on the TELCO following an intervention by the Nigerian government.

Nigerian banks on Friday barred the Johannesburg-based firm from using their USSD platform to conduct business as both sides scuffled over airtime sales fees.

The three-day-long feud started after MTN, which has the biggest share of Nigeria’s telecoms market, reduced the rate it pays banks for each transaction from 4.5 per cent to 2.5 per cent.

The lenders removed the telecom giant from their platforms, disallowing MTN users from accessing their bank accounts to recharge their phones.

As subscribers expressed their frustration, MTN advised them to seek alternative ways of recharging. On Saturday, the firm announced alternative channels for its airtime sales, including a host of Fintech platforms led by Flutterwave.

Service resumed Sunday afternoon after MTN agreed to revert to “status quo” at the request of the Minister of Communications, the Nigerian Communications Commission and the Central Bank of Nigeria while a permanent solution is being worked out.