• Login
  • Register
Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
Nairametrics
No Result
View All Result
Home Opinions Blurb

Why MTN Nigeria Recharge Card Sellers Jacked Prices Up

Onome Ohwovoriole by Onome Ohwovoriole
April 21, 2017
in Blurb, Company News
MTN Acquires N34billion Digital Pay TV License
Share on FacebookShare on TwitterShare on Linkedin

Nairametrics| The last two years have been difficult for MTN Nigeria. From the N1.04 trillion (later reduced to N330 billion) fine slammed on it in 2015 by the Nigerian Communications Commission (NCC) in 2015 for not disconnecting unregistered subscribers, to macro economic challenges in Nigeria, the telecoms firm is not having it easy.

It has now issued a notice to its customers not to buy recharge cards above their face value. Rather than issue a notice to its customers, the company should have cautioned its dealers who have a legitimate reason for the increase.

The recharge card business has a very thin profit margin, but favours those with a quick turnover. The street hawkers, make the least amount of money. Next on the chain are the distributors they buy from. The major distributors at the very top, make the most money, because they have the largest volumes. They also get the biggest incentives directly from MTN. Selling recharge cards may have been profitable in the early years of GSM in Nigeria, but as time went on more dealers were accredited. Which reduced the monopoly the pioneers had. The advent of mobile banking through USSD short codes, means fewer people are loading physical cards with each passing day.

RelatedStories

Karl Toriola, MTN Nigeria

NCC vs MTN: AGF to decide on criminal charges facing CEO Karl Toriola 

July 2, 2025
MTN

NCC approves three-year national roaming deal between MTN Nigeria and 9Mobile 

July 2, 2025

MTN Nigeria historically, has always given the smallest commission on its recharge cards. The commissions given by the firm have gradually gotten smaller. From a ratio of 5%, it has gone down to slightly over 2%. So recharge cards with a face value of N10,000 would be sold to a street hawker at a rate between N9750 to N9800 depending on the dealer. Other networks have a much higher profit margin, with Etisalat Nigeria having the highest profit margin.

MTN has two options to solve this issue. The first option would be to increase the profit margin it gives its dealers. The company may be unwilling to do this since it is facing tough times itself. The second option would be to phase out recharge cards with a face value of 100 naira and 200 naira respectively. The larger denomination of cards carry a bigger profit margin, but are largely shunned by the street hawkers who sell more of the smaller denominations.

Tags: MTN NigeriaTech
Onome Ohwovoriole

Onome Ohwovoriole

Onome Ohwovoriole has a degree in Economics and Statistics from the University of Benin and prior to joining Nairametrics in December 2016 as Lead Analyst had stints in Publishing, Automobile Services, Entertainment and Leadership Training. He covers companies in the Nigerian corporate space, especially those listed on the Nigerian Stock Exchange (NSE). He also has a keen interest in new frontiers like Cryptocurrencies and Fintech. In his spare time, he loves to read books on finance, fiction as well as keep up with happenings in the world of international diplomacy. You can contact him via onome.ohwovoriole@nairametrics.com

Related Posts

Karl Toriola, MTN Nigeria
Legal & Regulations

NCC vs MTN: AGF to decide on criminal charges facing CEO Karl Toriola 

July 2, 2025
MTN
Companies

NCC approves three-year national roaming deal between MTN Nigeria and 9Mobile 

July 2, 2025
MTN gains as SWOOTs capitalization close at N18.835 trillion.
Sectors

MTN Nigeria backs FG’s 3MTT initiative with N3 billion grant 

June 24, 2025
Access Bank
Financial Services

Inside Access Bank’s N180 billion claims against MTN 

June 13, 2025
MTN Group, Airtel Africa sign agreements to share network infrastructure in Nigeria and Uganda 
Financial Analysis

Data boom: Airtel and MTN set for profit surge in 2025 

June 9, 2025
companies
Equities

SWOOTs: Nigeria’s trillion-naira stocks that have gained over 20% this year

May 23, 2025
Next Post
“Forget About Oil… That Is Not Where Our Problems Lie” – New Finance Minister

Adeosun Wants Credit for Any Economic Growth Nigeria Enjoys

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Emple
nlng
first bank








DUNS

Recent News

  • Elon Musk’s xAI seeks top-tier multimedia engineers for Grok avatar team with salaries up to $440,000 
  • Canada to issue 10,000 Parents and Grandparents Program sponsorship from July 28 
  • BBNaija season 10 to launch July 26 with N150 million grand prize 

Follow us on social media:

Recent News

Elon Musk’s xAI raises $6 billion in Series B funding round 

Elon Musk’s xAI seeks top-tier multimedia engineers for Grok avatar team with salaries up to $440,000 

July 16, 2025
Canada

Canada to issue 10,000 Parents and Grandparents Program sponsorship from July 28 

July 16, 2025
  • iOS App
  • Android App
  • Contact Us
  • Home
  • Markets
  • Sectors
  • Economy
  • Business News
  • Financial Literacy
  • Disclaimer
  • Ads Disclaimer
  • Copyright Infringement

© 2025 Nairametrics

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Social Media Auto Publish Powered By : XYZScripts.com
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Login
  • Sign Up

© 2025 Nairametrics