MTN Nigeria in talks for longer term pricing structures of banking channel sales

9th April 2021 By: Natasha Odendaal - Creamer Media Senior Deputy Editor

Telecommunications group MTN Nigeria has been participating in a series of meetings, since April 6, to align on longer term pricing structures after a temporary suspension of airtime sales through the company’s banking channels owing to a dispute over the reduction in cost of sales.

The sales of MTN products through its banking channel partners was suspended on April 2.

It was restored by April 4, 2021, with customers able to access all services, after the intervention of the Minister of Communications and Digital Economy, the Nigeria Communication Commission and the Central Bank of Nigeria.

The company agreed to revert to the initial commission structure while it engages with the banks until a new long-term agreement can be reached on a sustainable pricing structure that will result in the reduction of costs and align with best international practice.

“We will provide a further market update once these discussions have been concluded. The streamlining MTN undertook is international standard and best practice as scale is built along distribution channels,” the company said in an update to shareholders.

“We are confident that partners in the banking sector will work with us to ensure this process concludes as quickly as possible to the benefit of the entire industry.”

In order to further expand the range of channels available to customers, MTN has activated a number of new channel partnerships with fintech partners and these will remain in place, significantly expanding the channels available to its customers and increasing its sales and distribution network.

The new channel partners include Sparkle, Konga Pay, Barter By Flutter Wave, Jumia Pay, OPay, Kuda, Carbon, BillsnPay, MTN On Demand, MTN Xtratime airtime loans, myMTN Web and Momo agent.