Banking services take nosedive over confusion in data price hike

The planned hike in prices of internet data by service providers in Nigeria is already taking its toll on Nigeria’s banking system.

The quality of service from a number of banks has taken a nosedive following conflicting signals from the Nigerian Communications Commission (NCC) and the various data services providers, over a directive to hike price of the services by 35 per cent, with effect from December 1, 2016.

Most banking services, including cheque clearing and online banking programmes have been affected by what officials described as “flip flop data delivery” caused by confusion over what rate to hold on to.

This had become worst since the denial by NCC that it never authorized the increase of data services, which had left the providers disoriented.

But some of the big-time data services providers, including MTN, Spetranet and Smile, were said to have already notified clients of the new price tags, reflecting the new increase, while some others withheld their services pending a clearer picture on the matter.

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However, many corporate organisations, especially banks that consume huge volume of date for their services were said to be passing through some sad experiences on this.

A senior management staff of Union Bank confirmed that the situation had affected some aspects of her bank’s transactions.

“Mostly affected are cheque clearance services among banks, which usually should have taken a maximum of 48 hours for intra state, but which since December 2 had been taking longer than 72 hours, while the interstate clearance, meant for 72 hours now doubles“, she said.

Some customers complained of inability to have their cheques cleared, citing cases involving First Bank, UBA, Diamond Bank and GTB, each of which had taken more than three days to clear, despite most of them being issued within Lagos.

“I have lodged in a UBA cheque with Union Bank since Friday and I’m being asked to come back tomorrow, Wednesday, but I urgently need the money to clear my goods at the wharf, George Nkuma, an importer told Ripples Nigeria on Tuesday.

Some of the banking services, particularly ATM and online banking programmes, already performing below standard in the past days, ever before the conflicting statement over the dataprice hike, have worsened, said an expert.

An official of one of the service providers said, “Our company has not been breaking even with the current price of N50 per megabyte of data, when the actual cost of acquiring broadband services has doubled since May 2016.

“We have actually been itching for an increase in price or otherwise, the authorities should press it on the broadband service providers to reduce charges, while government agencies, including NCC and FIRS, should review downwards their charges, otherwise there will be no answer to the crisis”, he stated.

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