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MTN explains cut in Banks’ USSD Commission

Oluwasina Phillip

MTN Nigeria has explained that the decision to slash the commission banks get for Unstructured Supplementary Service Data service was to make the service cheaper for subscribers.

The firm with the largest market share of the country’s subscribers was temporarily blocked by banks on April 2, 2021 from the sale of airtime through banking channels.

But the service was restored two days later after the Central Bank of Nigerian and the Minister of Communication and Digital economy intervened.

Nigerians had expressed frustration during the two-day brawl between the company and the banks.

MTN explained on Thursday that its intention was aimed at benefiting its subscribers.

It also revealed that it had reverted to the old commission rates.

MTN said, “We have reverted to the initial commission structure, while we engage with the banks to agree on a pricing basis that will result in the reduction in the costs and align with best international practice.”

This website had reported that the mobile operator reduced banks’ commission from an average of 3.5 per cent to 2.5 per cent which predicated the ban.

The telecom firm said the impact of the disruption was minimal on its operations as it successfully activated alternative channels to enable customers purchase airtime.

MTN said it values banks and other financial institutions in the country as critical to its business and would work out modalities that would be mutually beneficial to them.

 “MTN Nigeria’s intention has always been geared towards business optimization to the benefit of our customers, shareholders and indeed the country.

“As a result, the good customers influence every decision we take. We will continue to live our values that ‘everyone’s deserves the benefits of a modern connected life,” said the mobile operator.

ENDS

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