October 6, 2024

Alot of MTN users are still finding it very difficult to recharge their phones or SIM CARDS via USSD and Bank applications. A popular blogger, HaroldWrites has revealed the main reason behind it.






Taking to his Twitter page, HaroldWrites revealed why MTN users can’t recharge their SIM CARDS using bank’s USSD or bank apps. According to him, he says MTN wants to reduce the share banks and its aggregators get from each recharge from 4% to 2.5%


Despite much pleads from bank CEOsto MTN, the company management has refused. Banks’ managements are saying that the financial institutions need the 4% share more, because the institutions are responsible for the maintenance of the infrastructures of USSD.


Narrating the full details, HaroldWrites wrote:


“If you’ve been unable to recharge your MTN line or data using your bank’s USSD or app, I’ve got information about what’s going on. MTN is currently embroiled in a tug of war with Nigerian banks regarding how much percentage banks should earn from every recharge.






Prior to now, banks and aggregators share 4% of every successful recharge, while MTN keeps 96%. So say you recharge N1,000 MTN, the banks & aggregators share N40 while MTN keeps N960.

The problem now is,MTN wants to reduce that 4% that goes to banks & aggregators to 2.5%.


The banks are fighting against this reduction ‘cos, according to them, they maintain the infrastructure (i.e the USSD channel & app) through which these recharges are carried out. So,they need the money.They can’t bear the costs of maintaining an infrastructure for MTN’s benefit.


Moreover, they already share the meagre 4% on each transaction with aggregators. So, if MTN (who keeps 96% of the transaction) reduces that 4% to 2.5%, the banks/aggregators’ operations would be hurt. They could be maintaining the recharge service for MTN at a loss.


Despite the banks’ plea that MTN shouldn’t reduce their %, MTN was/is still adamant they’ll go ahead with the reduction.

Banks’ CEOs met & decided to (temporarily) remove MTN services from their USSD & apps. As an MTN user, you can’t recharge your line using a bank USSD or app.


The banks are hoping that if they frustrate MTN customers, MTN would budge, or run the risk of losing customers (because “nobody” buys recharge cards anymore).

In response, MTN introduced “ZIGI”. ZIGI is MTN’s online platform for its customers to recharge their lines.


Neither the banks nor MTN want to come out & admit what’s truly going on to their customers. Instead, MTN is sending messages to its customers to buy physical recharge cards or use ZIGI, while the banks (like mine) have this message on their app when you try to recharge MTN.






Meanwhile, other Telcos are keenly watching this impasse between MTN and the banks. If the banks budge and accept commission reduction from 4% to 2.5% from MTN, those Telcos will swing into action and demand that banks accept commission reduction from them too!”




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