Economy

Before You Fall Into Recharge Card Business Scam, Read This

Published

7 years ago

11/07/2018

By Dipo Olowookere

I have read several times about some Nigerians lamenting being scammed by fraudsters who claim they can go into recharge business by selling in bulk with as low as N10,000.

Each time I read or hear about victims crying about being scammed, I say to myself that they fell for it because they were ignorant and failed to do at least a bit of research before parting away with their hard-earned money.

The purpose of this article is to educate you on some basics of the recharge card business so that no one can fool you next time about it.

It is important I state that recharge card business is capital intensive, especially if you want to make huge profit.

First, none of the GSM network provider sells recharge cards in bulk directly to individuals or small scale sellers. They sell their recharge card pins directly to dealers, who have registered with them and must have millions of Naira to invest into the business.

In some cases, if not most, banks stand in as guarantor for these dealers because dealers are given targets to meet each month. Some networks, like MTN, give their dealers N1 billion turnover per month.

Now, when dealers buy these recharge card pins, which are then printed in cards and papers, they sell to those called the sub-dealers. Dealers also sell the recharge card pins to sub-dealers as Virtual Top Up (VTU).

In some cases, some of these sub-dealers buy recharge cards worth N10-50 million daily from dealers to resell to those who hawk the cards to retailers (those who sell the product under umbrellas by the roadsides, shops and others).

Recharge Card Prices

The prices of recharge cards are influenced by demand and supply. When there is a huge demand for a network’s recharge card, the price goes up because it is scarce in the market. However, when there is less demand for it, the price drops.

In most cases, the prices of recharge cards go up at the beginning of the month and drops at the end of the month. This is because at the end of the month, most dealers are after meeting their targets and would sell at a lower rate in order to get the commission network providers give to dealers who meet their targets.

But MTN, which is the market leader, has somehow stabilised its price at the market unlike in the past.

From my investigation, MTN sells its N100 recharge card to dealers at N96 and it expects them to sell to sub-dealers and retailers at N96.50k. It came up with this policy so as to stop the sale of its cards above the face value like it happened in the past where the N100 voucher was sold for N110.

For Airtel, the price ranges from N94.50k to N95.50k, depending on who is selling it and the volume being purchased.

For Etisalat, the price ranges from N94 to N95, while Glo goes for N90 to N92.

In recharge card business, the prices of other card denominations are calculated using the price of the N100 cards.

If anyone approaches you to say he can get you recharge cards of any network at rates about N3-5 below the above prices, you should raise a red flag.

Also, if anyone says you can start printing recharge cards as low as N10,000, you should raise an eyebrow because no network sells their recharge card pins to sub-dealers or retailers, but dealers alone, who are like partners in the business with them. In fact, the network providers call their dealers Trade Partners.

If you require further information or clarification, please feel free to use the comment box.

Economy

NBA Demands Suspension of Controversial Tax Laws

Published

3 hours ago

24/12/2025

Modupe Gbadeyanka

By Modupe Gbadeyanka

The federal government has been asked by the Nigerian Bar Association (NBA) to suspend the implementation of the controversial tax laws.

In a reaction to the tax reform acts, the president of the group, Mr Afam Osigwe (SAN), the suspension of the laws would allow for a proper investigation into allegations of alterations in the gazetted and harmonised copies.

A member of the House of Representatives, Mr Abdussamad Dasuki, alleged that some parts of the laws passed by the parliament were different from the gazetted copy.

To address the issues raised, the NBA said it is “imperative that a comprehensive, open, and transparent investigation be conducted to clarify the circumstances surrounding the enactment of the laws and to restore public confidence in the legislative process.”

“Until these issues are fully examined and resolved, all plans for the implementation of the Tax Reform Acts should be immediately suspended,” the association declared.

It noted that the controversies “raise grave concerns about the integrity, transparency, and credibility of Nigeria’s legislative process.”

“These developments strike at the very heart of constitutional governance and call into question the procedural sanctity that must attend lawmaking in a democratic society,” it noted.

“Legal and policy uncertainty of this magnitude has far-reaching consequences. It unsettles the business environment, erodes investor confidence, and creates unpredictability for individuals, businesses, and institutions required to comply with the law. Such uncertainty is inimical to economic stability and should have no place in a system governed by the rule of law.

“Nigeria’s constitutional democracy demands that laws, especially those with profound economic and social implications, emerge from processes that are transparent, accountable, and beyond reproach. Anything short of this undermines public trust and weakens the foundation upon which lawful governance rests.

“We therefore call on all relevant authorities to act swiftly and responsibly in addressing this controversy, in the overriding interest of constitutional order, economic stability, and the preservation of the rule of law,” the organisation stated.

Economy

MRS Oil, Two Others Raise NASD Bourse Higher by 0.52%

Published

5 hours ago

24/12/2025

Adedapo Adesanya

By Adedapo Adesanya

Demand for hot stocks, including MRS Oil Plc, buoyed the NASD Over-the-Counter (OTC) Securities Exchange by 0.52 per cent on Tuesday, December 23.

The energy company was one of the three price gainers for the session as it chalked up N19.69 to sell at N216.59 per share versus the previous day’s value of N196.90 per share.

Further, FrieslandCampina Wamco Nigeria Plc gained N2.95 to close at N56.75 per unit versus N53.80 per unit and Golden Capital Plc appreciated by 84 Kobo to N9.29 per share from Monday’s N8.45 per share.

Consequently, the market capitalisation went up by N10.95 billion to N2.125 trillion from N2.125 trillion and the NASD Unlisted Security Index (NSI) rose by 18.31 points to 3,570.37 points from 3,552.06 points.

Yesterday, the NASD bourse recorded a price loser, the Central Securities Clearing System Plc (CSCS), which gave up 17 Kobo to close at N33.70 per unit against the previous trading value of N33.87 per unit.

The volume of securities traded at the session went down by 97.6 per cent to 297,902 units from the previous day’s 12.6 million units, the value of securities decreased by 98.5 per cent to N10.5 million from N713.6 million, and the number of deals remained flat at 32 deals.

By value, Infrastructure Credit Guarantee Company (InfraCredit) Plc ended as the most actively traded stock on a year-to-date basis with 5.8 billion units exchanged for N16.4 billion. This was followed by Okitipupa Plc, which traded 178.9 million units valued at N9.5 billion, and MRS Oil Plc with 36.1 million units worth N4.9 billion.

In terms of volume, also on a year-to-date basis, InfraCredit Plc led the chart with a turnover of 5.8 billion units traded for N16.4 billion. Industrial and General Insurance (IGI) Plc ranked second with 1.2 billion units sold for N420.7 million, while Impresit Bakolori Plc followed with the sale of 536.9 million units valued at N524.9 million.

Economy

NGX All-Share Index Soars to 153,354.13 points

Published

6 hours ago

24/12/2025

Dipo Olowookere

By Dipo Olowookere

It was another bullish trading session for the Nigerian Exchange (NGX) Limited as it closed higher by 0.59 per cent on Tuesday.

The market further rallied due to continued interest in large and mid-cap stocks on the exchange by investors rebalancing their portfolios for the year-end.

Yesterday, Aluminium Extrusion sustained its upward trajectory after it further appreciated by 9.96 per cent to N14.90, as Austin Laz gained 9.81 per cent to close at N2.91, Custodian Investment improved by 9.69 per cent to N38.50, and First Holdco soared by 9.35 per cent to N50.30.

Conversely, Royal Exchange declined by 7.22 per cent to N1.80, Champion Breweries shrank by 6.57 per cent to N15.65, NASCON lost 5.36 per cent to trade at N105.05, Sovereign Trust Insurance depreciated by 5.28 per cent to N3.77, and Japaul went down by 4.51 per cent to N2.33.

At the close of business, 29 shares ended on the gainers’ table and 27 shares finished on the losers’ log, representing a positive market breadth index and bullish investor sentiment.

This raised the All-Share Index (ASI) by 895.06 points to 153,354.13 points from 152,459.07 points and lifted the market capitalisation by N579 billion to N97.772 trillion from the previous day’s N97.193 trillion.

VFD Group finished the day as the busiest stock after it recorded a turnover of 192.0 million units worth N2.1 billion, GTCO exchanged 63.5 million units valued at N5.6 billion, Access Holdings traded 49.8 million units for N1.0 billion, First Holdco sold 45.8 million units valued at N2.3 billion, and Secure Electronic Technology transacted 38.3 million units worth N28.4 million.

In all, market participants bought and sold 677.4 million units valued at N20.8 billion in 27,589 deals compared with the 451.5 million units worth N13.0 billion traded in 33,327 deals on Monday, showing an improvement in the trading volume and value by 50.03 per cent and 60.00 per cent apiece, and a shortfall in the number of deals by 17.22 per cent.