You are currently viewing our desktop site, do you want to download our app instead?
Moneyweb Android App Moneyweb iOS App Moneyweb Mobile Web App

NEW SENS search and JSE share prices

More about the app

Nigerian banks deny owing MTN Nigeria and other telcos

‘There is no such thing as an obligation due from banks to telcos,’ Herbert Wigwe, chief executive officer of Access Bank Plc, said.
Image: Waldo Swiegers/Bloomberg

Nigerian banks are not indebted to MTN Nigeria and other phone companies for using telecommunication platforms to provide payment services, a bank chief executive said.

“There is no such thing as an obligation due from banks to telcos,” Herbert Wigwe, chief executive officer of Access Bank Plc, said on an investor call in Lagos. “We chose not to make a public statement out of it because it is not appropriate for us to be found fighting with telcos in public,” he said Thursday.

Moneyweb Insider INSIDERGOLD

Subscribe for full access to all our share and unit trust data tools, our award-winning articles, and support quality journalism in the process.

Choose an option:

R63 per month
R630 per year SAVE R126

You will be redirected to a checkout page.
To view all features and options, click here.

A monthly subscription is charged pro rata, based on the day of purchase. This is non-refundable and includes a R5 once-off sign-up fee.
A yearly subscription is refundable within 14 days of purchase and includes a 365-day membership.

Click here for more information.

Wigwe is the head of a team of bank CEOs that has been in discussion with MTN Nigeria to resolve a dispute that led some banks to cut off the company from their banking platforms last week. This was after MTN, the West African nation’s biggest telecom services provider, reduced a commission charged on airtime purchases through banking channels by almost half to 2.5%.

The action against MTN was an escalation of an ongoing dispute between lenders and telcos in Africa’s largest economy over fees chargeable on services carried out on each others’ platforms. Telecom operators through their umbrella union, the Association of Licensed Telecommunications Operators of Nigeria, threatened last month to disconnect banks from providing payment services on telco platforms until they paid a 42 billion naira ($103 million) debt allegedly due to its members from end-user billing.

The threat was called off after the Central Bank of Nigeria and the Ministry of Communications and Digital Economy intervened in the dispute leading to an agreement to charge a fixed amount and also settle any indebtedness for past services.

The telecom companies are asking the banks to remit money to them even for transactions that did not take place, Wigwe said. “It is true that they continue to provide this service but this service has nothing to do with the banks,” he said.

Access Bank’s transactions value on telco platforms more than doubled to 1.9 trillion naira in 2020 from 891 billion naira a year earlier, according to an emailed presentation. The volume of transactions rose 80% to 590 million as more customers adopted the technology for payments.

© 2021 Bloomberg

COMMENTS   5

Sort by:
  • Oldest first
  • Newest first
  • Top voted

You must be signed in to comment.

SIGN IN SIGN UP

Someone is stealing in this blue chip jurisdiction!
Maybe its time for MTN to return the past favours of the Nigerians

Surely a Bank will know how much money a client has?

And same for a Bank client?

Else then why use a Bank in the first place if your money is or is not there?

Why does any SA company open for business in Nigeria? Is the money so good irrespective of these constant conflicts?

Nigeria has a population of >200 Million – South Africa 60 Million.

Nigeria has a growing economy – South Africa has a dying economy.

Nigeria is closer to the Western world – South Africa is closer to Antarctica.

None of this equates to success. If a a large population equalled wealth, why are all the Indians not rich. Italy is in the Western world and in recession. Nigeria’s economy is not evenly distributed with problematic barriers to trade. Being close to rich people doesn’t mean you become rich otherwise Yemen would be rolling in dollars.

The only reason SA is not on the same level as any EU country is because of the corrupt ANC – that’s it.

Oh yeah … so far we don’t have Islamic militants kidnapping hundreds of schoolchildren.

End of comments.

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR

Podcasts

INSIDER SUBSCRIPTIONS APP VIDEOS RADIO / LISTEN LIVE SHOP OFFERS WEBINARS NEWSLETTERS TRENDING PORTFOLIO TOOL CPD HUB

Follow us:

Search Articles: Advanced Search
Click a Company: