Economy
Before You Fall Into Recharge Card Business Scam, Read This
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.
By Dipo Olowookere
The presence of the bulls further strengthened the Nigerian Exchange (NGX) Limited on Tuesday, as the performance indices further gained 0.19 per cent.
The nation’s stock market survived profit-taking witnessed in the banking sector during the session, which crashed its index by 0.02 per cent.
This loss was offset by the gains recorded by the other sectors, with the insurance segment chalking up 0.49 per cent. The consumer goods space appreciated by 0.47 per cent, the industrial goods counter expanded by 0.04 per cent, and the energy sector rose by 0.03 per cent.
At the close of business, the All-Share Index (ASI) was elevated by 475.60 points to 246,659.56 points from 246,183.96 points, and the market capitalisation improved by N307 billion to N159.119 trillion from N158.812 trillion.
The market breadth index was positive yesterday after the bourse finished with 34 price gainers and 22 price losers, implying strong investor sentiment.
UPDC REIT grew by 9.86 per cent to N11.70, Thomas Wyatt advanced by 9.73 per cent to N3.72, Ikeja Hotel climbed 9.53 per cent to N46.55, The Initiates went up by 9.52 per cent to N33.95, and Neimeth increased by 9.47 per cent to N9.25.
Conversely, Mecure depreciated by 9.95 per cent to N76.95, Haldane McCall dropped 9.86 per cent to trade at N3.29, CMFC declined by 9.85 per cent to N3.02, Trans-Nationwide Express lost 9.68 per cent to close at N2.80, and Academy Press shrank by 9.38 per cent to N5.80.
The activity level was mixed during the session, as investors traded 932.5 million equities worth N49.3 billion in 50,059 deals versus the 851.6 million equities valued at N49.6 billion transacted in 56,873 deals a day earlier.
This showed that the trading volume soared by 9.50 per cent, the trading value moderated by 0.61 per cent, and the number of deals retreated by 11.98 per cent.
The busiest equity for the day was Access Holdings, which sold 336.6 million units for N8.7 billion. FCMB exchanged 88.8 million units worth N1.0 billion, First Holdco transacted 72.7 million units valued at N7.7 billion, Zenith Bank traded 37.4 million units for N4.4 billion, and UBA transacted 32.1 million units worth N1.5 billion.
By Aduragbemi Omiyale
Thirty-one companies on Tuesday emerged as winners of the 2025 licensing round of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
The energy firms competed to take control of 50 oil and gas blocks put on offer by the Nigerian government.
They were among the 143 companies that submitted 200 bids for the oil facilities drawn from diverse terrains, including the Niger Delta Onshore, Niger Delta Shallow Water, Niger Delta Deep Offshore, Benin Basin Onshore, Anambra Basin Onshore, Chad Basin Onshore and Benue Trough.
Business Post gathered that investors, however, were only interested in 37 out of the 50 oil blocks put up for sale by the NUPRC. This is the first time in Nigeria’s energy history that frontier basins would attract such a level of investor interest.
The organisations that won the bids include SSonic Petroleum Limited (PPL 2A29), CFP Pipeline and Flowlines (2A30), Dutchford E&P Limited (2A32), Attabanson Global Company Limited (2A33 and PPL 901), Rosem Energy Limited (2A38), Pivot-GIS Limited (2A39), Network E&P (2A40), Asharami (2A41), LexOil (2A42), BVOF (2A43), GupscoEnergy Limited (2A44 and 2A51), Saratoga (2A45), Volante (2A46), Concept-Reel Petroleum Services Limited (2A47 and 2A55), Clinton Oil Field (2A48 and 2A62) and Nuway Oaklane Limited (2A49).
Others are Ramec (2A50), Italia (2A53), Blueridge E&P (2A54), Up Energies Limited (2A56), AYM Shafa (2A57), Blackrock Holdings Limited (2A58), Funtay Integrated Business Limited (2A59), Riparian Development and Production Limited (2A60), Nikstallis (2A61 and PPL 900), Stardeep Petroleum (PPL 2010), Dakoda & U Limited (PPL308 and PPL 800), Southborne Oil and Gas Limited (PPL 902), Lanaka Petroleum (PPL 903) HighbanResources Limited (PPL 700), Eyre Energy Limited (PPL 801).
By Adedapo Adesanya
Oil prices rose roughly 2 per cent on Tuesday as investors reacted to mounting concerns that escalating hostilities between the United States and Iran and threats by Yemen’s Houthis to blockade Saudi Arabia could disrupt global energy supplies.
Brent futures rose $1.79 or 2.0 per cent to $91.01 a barrel, while the US West Texas Intermediate (WTI) crude gained $1.68 or 2.0 per cent to settle at $84.91 per barrel.
US forces bombed targets in the south and west of Iran while Iran targeted American sites in Bahrain, Kuwait and Jordan and at least one tanker was hit in the Strait of Hormuz.
Supply concerns resurfaced with the Strait essentially closed again and tanker traffic at multi-month lows, to the level from before the ceasefire between the US and Iran, which appears to be over at the moment.
Prices could go much higher if the renewed conflict drags on for a few more months, as the world has now drained a lot of the buffers that had kept oil surges in check between March and May.
Drained strategic and commercial inventories in many key oil-consuming economies, including the US, are setting the stage for further oil price rallies during the busiest oil demand season.
The just-declared Houthi blockade on Saudi maritime shipping has already begun to witness ill-effects, as reports emerge of two oil tankers having made U-turns while initially en route toward the Suez Canal. It was reported that their crews received threats from Houthi militants in Yemen.
The two oil tankers, which loaded Saudi crude for China and India, made U-turns in the Red Sea and headed toward the Suez following the warning from the militia.
Meanwhile, Kuwait’s power and desalination plants caught fire for a second straight day as US and Iran traded strikes for a tenth day.
As Russia’s war with Ukraine expands beyond Ukraine’s borders, the Caspian Pipeline Consortium (CPC) has stopped receiving oil from Kazakhstan after suspending loadings on Monday due to attacks on oil tankers at its Black Sea terminal.
159 Comments