Nigerian stocks ended the first trading session of the week on an impressive note.
Consequently, the All-Share Index appreciated by 0.89% to close at 38,722.87 index points as against 38.382.39 index points recorded in the previous trading session. Nigerian investors printed gains of N178.14 billion at the end of Monday’s trading session.
- Year-to-date return and market capitalization settled at -3.80%, and N20.25 trillion respectively. The local bourse recorded 26 gainers against 6 losers to begin trading on the positive route.
- JBERGER (+10.00%) led the gainer’s chart today, while CHAMPION (-8.20%) was the top loser.
- JBERGER N17 1.7 10.00% to close at N18.7
- STANBIC N40 4 10.00% to close at N44
- UACN N7.5 0.5 6.67%to close at N8
- JOHNHOLT N0.46 0.03 6.52% to close at N0.49
- INTBREW N5.1 0.3 5.88% to close at N5.4
- CHAMPION 8.20% to close at N2.24
- JAIZBANK N0.67 -0.03 -4.48% to close at N0.64
- JAPAULGOLD N0.49 -0.02 -4.08% to close at N0.47
- CHIPLC N0.31 -0.01 -3.23% to close at N0.3
- EARNAFRCA N1.1 -0.03 -2.73% to close at N1.07
Trading activities on the floor of the Nigerian Stock Exchange on Monday closed on a positive route following gains recorded by blue-chip firms like STANBIC, JBERGER, and UACN.
- Nairametrics, however, envisages cautious buying amid growing uncertainty in Nigeria’s key international market, which includes resurging COVID-19 cases.
USSD N42 billion debt: Telcos insist banks have to pay, seek CBN, NCC intervention
Telcos in Nigeria have called for the intervention of the CBN and NCC as they insist that banks have to pay the N42 billion debt for the USSD services.
Telecommunications companies have insisted that the banks have to pay the N42 billion debt for the Unstructured Supplementary Service Data (USSD) and called for the intervention of the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) over the dispute.
This follows the accumulation of the debt to the mobile network operators over a period of about 1 year for services rendered to the deposit money banks.
According to a report from Punch, this was made known by the Chairman, Association of Licensed Telecommunications Operators of Nigeria, Gbenga Adebayo, who said that this has become a moral burden on the banks.
What the Chairman, Association of Licensed Telecommunications Operators of Nigeria is saying
Adebayo, in his statement, said, “The over N42bn debt remains outstanding and the banks have to pay the telcos. It has become a moral obligation because the banks used the services, debited their customer accounts and now not paying the telcos.
Who do they expect to pay and what were the deductions made from their customers for USSD services, which you and I were debited for?
What is the deduction meant to for? It’s a debt and the banks have to pay the operators. It’s a moral obligation.”
On the association’s next step should the banks refuse to pay, Adebayo stated that the CBN and NCC would have to intervene.
He said, “We are hoping the regulators, CBN and NCC, having intervened by preventing operators from disconnecting the USSD services, will resolve the lingering debt issues.
“They (banks) owe the operators and they will pay. Otherwise, where is the money deducted for USSD services from their customers? You and I know we were charged for USSD transactions; what is the deduction meant for?”
What you should know
- It can be recalled that telecommunication firms under the aegis of the Association of Licensed Telecommunication Operators of Nigeria (ALTON), had threatened to withdraw their Unstructured Supplementary Service Data (USSD) services to financial institutions from March 15 due to the N42 billion accumulated debt.
- However, following the intervention of the CBN and NCC, the planned action was shelved with both parties (the telcos and the banks), going into a meeting with the Federal Government representatives.
- As a fallout of the meeting, the CBN and NCC announced the introduction of N6.98 per transaction as new charges for customers using the Unstructured Supplementary Service Data (USSD) services with effect from March 16, 2021.
- Recently, the Chief Executive Officer, Access Bank Plc, Herbert Wigwe, reportedly stated that Nigerian banks were not indebted to telecommunications firms for using telcos platforms to provide payment services.
- The statement made the President, Association of Telecommunications Companies of Nigeria, Ikechukwu Nnamani, ask CBN to call the banks to order as regards agreements reached on the settling of the N42bn.
Uber, Bolt drivers plan to withdraw their services on Monday
e-cab drivers in Lagos have asked the e-hailing companies to immediately increase fares or they would withdraw their services from the roads on Monday, April 19, 2021.
Some Uber and Bolt e-cab drivers in Lagos have asked the e-hailing companies to immediately increase fares being charged by the operators or they would withdraw their services from the roads on Monday, April 19, 2021.
The threat from the e-cab operators, under the aegis of Professional E-hailing Drivers and Private Owners Association (PEDPA), follows the non-review of its prices by the e-hailing companies despite unprecedented increases in the price of petrol, vehicle spare parts, food items and other essential commodities in the country.
This disclosure was made by the National President of PEDPA, Mr Idris Shonuga, at a news conference in Lagos, on Saturday, where he called for immediate upward review of e-cab fares to reflect the current economic reality in the country.
Shonuga, who pointed out that more than 95% of e-hailing transactions are consummated through Uber and Bolt platforms, said that the e-hailing companies have continued to maintain low fares and refused any revision in line with the current inflationary trend.
What the National President of PEDPA is saying
Shonuga in his statement said, “In a quest to work harmoniously at resolving some issues, the association wrote several letters to the companies which were not attended to, showing nonchalant attitude towards our plight.
Your companies have failed, refused and neglected to honour our request for a meeting to discuss issues beneficial to all e-hailing drivers in Nigeria. And to fashion a harmonious relationship that will benefit, dignify and improve the standard of living of e-hailing drivers, private car owners and the general standard of e-hailing business in the country.
Instead of fixing a new and reasonable fare in line with inflation, the companies have recklessly continued to maintain the low fare, thereby, impoverishing hard-working young Nigerians who are diligently and lawfully trying to make a decent living.’’
The e-cab operators are also asking for adequate welfare package for drivers and compensation to the families of those that lost their lives or are permanently disabled in the line of duty, pointing out that over 15 drivers had lost their lives, while some had been permanently disabled in accidents in the course of the service.
Shonuga, who also disclosed that over 20 other members of their association have also lost their lives through kidnapping or killed by ritualists without any compensation from the operators, said that the association was considering taking legal action to seek remedies against the e-hailing companies if their demands were not met.
What you should know
- This is not the first time that e-cab operators of Uber and Bolt have threatened to down tools over disagreements with the e-hailing companies. It can be recalled that in August 2020, the drivers under the e-hailing platform for the 2 companies threatened to dump the ride-hailing services over unfavourable business practices.
- They said that both app providers took unilateral decisions, fixed inequitable commissions for themselves, unhealthy trip fares and denied them the right to belong to a union.
- The drivers also said that the providers blocked drivers at will without considering their hire-to-purchase status, showed no empathy to drivers in cases of emergency, loss of lives while on an active trip and many other lopsided unethical business practices.
Nairametrics | Company Earnings
Access our Live Feed portal for the latest company earnings as they drop.
- PZ Cussons Nigeria Plc appoints Ifueko Okauru as Independent Non-Executive Director.
- Chams Plc announces the appointment of Patricia Duru as new CFO
- NPF Microfinance Bank reports a profit after tax of N614.42 million in FY 2020.
- UACN Property Development Company Plc appoints Ojo Odunayo as new CEO.
- Unilever Nigeria Plc reports a loss of N492 million in Q1 2021.