Confirming this development in separate statements seen by Unmask NG, MTN and Airtel disclosed that with CBN’s Approval in Principle, they can now operate payment services in the country.

While MTN said it would run a payment service under Momo Payment Service Bank Limited, Airtel made it known that it would only operate a payment service under SMARTCASH Payment Service Bank Limited.

Segun Ogunsanya, the Chief Executive Officer (CEO), Airtel Africa, stated: “We will not work closely with the CBN to meet all its conditions to receive the operating licence and commence operations.

“The final operating licence will enable us to expand our digital financial products and reach the millions of Nigerians that do not have access to traditional financial services.”

On its part, MTN stated: “This is the first step in the process towards final approval, subject to the fulfillment of certain conditions as stipulated by the CBN.

“The decision to issue a final approval is firmly within the regulatory purview of the CBN and we respect their right and judgment in that regard.”

What you should know

MTN and Airtel are not the first telcos to be licenced for banking services.

It would be recalled that two years ago, the CBN granted Globacom and 9Mobile PSB licences through their subsidiaries, Money Master PSB and 9 PSB, respectively.

According to the central bank, PSBs are to leverage mobile and digital channels in order to enhance financial inclusion and stimulate economic activities in rural areas through the provision of financial services.

The post MTN, Airtel Finally Secure CBN’s Nod To Become FinTech Firms appeared first on Business News in Nigeria.

Sources in the affected states confirmed to Unmask NG that the ban of telcos’ services due to the lingering insecurity by bandits has affected everyone, such that banking services could not be accessed.

A resident of Chikun, Kaduna, Kenneth Okafor said he had to leave the comfort of his home at the Sabo Tasha area to Barnawa in the Kaduna South local government area to make and receive calls.

Okafor, who also operates a PoS business, noted that the suspension of telecom services had affected his daily returns as customers preferred moving to areas with networks to transact their businesses.

Another operator of PoS business, Rose Ajeibi, resident of Sabo, also narrated her ugly experience.

“I was forced to close shop shortly after the announcement,” she said.

Some bank customers in Sokoto also lamented how they had to travel far to local government areas not affected by the telecoms ban to access banking services.

In Katsina State, it was observed how the shutdown had affected several businesses in the affected LGAs.

Business centres rendering Internet services, PoS operators, among others, were the worst hit.

Hajiya Aishatu Jamilu, who is a daily thrift collector and a customer of a first-generation bank in Dutsin-Ma, narrated how the ban had affected her business.

She said, “My husband introduced me to the business of thrift collection from people and I have been doing it for about 25 years now. Since our network was shut down in September, I have been travelling to Katsina to transact business with my customers and bank. This is a major challenge to me.”

Ado Lawan, who is also a POS operator in Kurfi, said the ban had affected his business.

Mallam Ahmad Bishir, who operates a cyber cafe in Dutsin-ma, also narrated how he could no longer render services to his customers who were mainly students of the Isah Kaita College of Education and Federal University, Dutsin-ma.

A 200 Level Fisheries and Aquatic student of the Federal University, Dutsin-ma, who spoke on condition of anonymity, said he always gave his debit card to his friend who is a commercial driver whenever he needed cash.

In Zamfara State, it was noted that due to the ban, bank customers often visited Gusau, the state capital, to withdraw money, while several others travelled to the neighbouring Sokoto, Kebbi, and katsina states to access banking services.

According to residents, some customers travel as far as Kaduna and Kano to transact certain businesses.

A PoS operator, Ridwanu Isa, who lives in the Shinkafi LGA, said he had been out of job for over a month.

He said he was recently forced to relocate to Gusau town where there are telecom services, to continue his business.

Why federal government ban telephone services in north

Due to the incessant attacks by bandits and other insecurity challenges, the President Muhammadu Buhari-led government imposed a ban on telecommunication services in Zamfara and parts of Sokoto, Katsina, and Kaduna states.

In compliance with the directive of the Nigerian Communications Commission (NCC), GSM operators, on Friday, September 3, 2021, shut down their 248 base stations in Zamfara State.

The ban was later extended to 13 local government areas in Katsina, 14 local government areas in Sokoto and about seven LGAs in Kaduna. Zamfara State which has 14 local government areas had telecoms services restored in the Gusau capital recently, leaving the ban in 13 local government areas. This brings the total number of local government areas affected by the ban currently to 47.

The 13 local government areas affected in Katsina are: Sabuwa, Faskari, Dandume, Batsari, Danmusa, Kankara, Jibia, Safana, Dutsin-Ma,Kurfi, Funtua, Bakori and Malumfashi.

The 14 local government areas affected in Sokoto are: Gada, Goronyo, Gudu, Gwadabawa, Illela, Isa, Kebbe, Sabon Birni, Shagari, Rabah, Tambuwal, Tangaza, Tureta and Wurno.

The seven local government areas reportedly affected in Kaduna are: Kajuru, Chikun, Igabi, Birnin Gwari, Giwa, Zaria, and Zango-Kataf.

The post Bandits’ Attacks: Bank Customers, PoS Operators Express Sadness As Telcos Halt Services appeared first on Business News in Nigeria.

Recall that in September,MTN’s grip in the telecommunications market slacked as its market share dropped from 40.90% to 40.30%.

While MTN was losing subscribers, its closest rival, Airtel, continue to grow its subscriber base by over 483,000 subscribers. This means that Airtel was gaining more than the number MTN lost within the same period.

Airtel Network rose from 54.7 million in August to 55.2 million in September, to close the gap between Airtel and MTN.

According to Nigerian Communications Commission (NCC), Glo Network recorded an increase in its subscriber base, which rose from 52,9 million to 54.2 million in September, Glo Network recorded in August; reflecting an addition of 1.3 million, meaning Glo Network recorded the highest voice subscriber growth.

Surprisingly, 9mobile Network which has been struggling to gain subscribers five months ago, also recorded voice subscriber growth, after its subscriber base rose from the 12.3 million to 12.7 million in September, rising by 351,600 gain.

Meanwhile, the loss of subscriber which was recorded in MTN’s voice (telephone) subscriber base, fell by 448,000 with 82.6 million subscribers, this is below the initial 83.08m it recorded in August.

What this means

Indeed, the past few month hasn’t been a good one for MTN, as the company made efforts to win its competitors Airtel and Glo Network in the data war.

While MTN couldn’t keep its subscriber base from reducing, its rivals’ Airtel, Globacom, and 9mobile have gained more subscribers within the same month.

In this torrid period, note that the Subscribers dumping MTN may cost the company its market share within the Nigerian market.

The post MTN Loses Subscribers To Rivals, Here’s Why appeared first on Business News in Nigeria.

Information available to Unmask NG has it that MTN has an 18.9 percent stake in Jumia, a German-owned e-commerce company in Africa, which has now been sold to raise $138 million.

In an obtained statement, MTN Group said, “We are proud to have been a partner in the evolution of one of Africa’s pioneering online marketplace businesses and will continue our relationship with Jumia through ongoing operational partnerships in some markets.”

Recall that MTN had sold its stake in Jumia from claims that the e-commerce firm had lied or omitted vital information from its filing statements.

After Jumia filed for an IPO on the New York Stock Exchange (NYSE), it was then uncovered that the company lured investors to put their money in the company with false financial reports.

Following a back and forth intense debate between Jumia and its investors, the company agreed to settle the fraud case out of court with a promise to pay a total of $6 million.

Other markets MTN leveraged to raise funds

Asides from Jumia Company, MTN revealed that the company has sold its stake in its subsidiaries in Zambia and intends to sell some in Ghana and Syria. The telco raised a total of R204 million after localising it 8 percent shares in Zambia.

A statement from MTN read: “We are pleased to announce that a sale and purchase agreement has been concluded to transfer an 8 percent holding in MTN Zambia to the National Pension Scheme Authority (NAPSA) in Zambia. The group has received net proceeds of approximately R204 million for the transaction;

“Meanwhile, a 12.5 percent stake in MTN Ghana will also be localized, which will increase MTN Ghana’s free-float on the Ghana Stock Exchange (GSE) to 25 percent.”

MTN is however considering an exit from Syria by putting its 75 percent stake in MTN Syria on sale, with 20 percent shareholding in Belgacom International Carrier Services SA (BICS) to be sold.

The post MTN Leverages Jumia To Reduce Debt Burden appeared first on Business News in Nigeria.