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Telecom

FG Mum as Telcos Threaten to Disconnect Banks from USSD Services over N250Bn Debt

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Federal government has failed to intervene in the unstructured supplementary service data (USSD) debt crisis between the telecom operators and the financial banks in the country.

FG Mum as Telcos Threaten to Disconnect Banks from USSD Services over N250Bn Debt

Karl Toriola, chief executive officer (CEO), MTN Nigeria, said the banks might be disconnected from the USSD platform due to debt arising from the use of the quick codes by their customers, which has now reached N250 billion.

USSD, also known as quick or feature codes, is a global system for mobile communications (GSM) protocol that is used to send text messages and initiate financial transactions such as cash transfers, balance inquiries, payments for services and others.

As at Tuesday, Dr. Bosun Tijani, minister of Communications and Digital Economy, and the Nigerian Communications Commission (NCC) were taciturn.

But Toriola said mobile network operators (MNOs) might, subject to regulatory approval, suspend supporting the use of the service on the network for banking operations, as the debt had continued to pile up and was becoming unsustainable to the operators.

According to Toriola, the increasing debt is unsustainable for telecommunications companies (telcos).

Also speaking, Engr. Gbenga Adebayo, chairman, Association of Licensed Telecom Operators of Nigeria (ALTON), described the services provided by telecommunication firms for banks’ customers to use USSD as commercial and not for social purpose

“The debt has been long overdue and the banks who owe the telcos have more or less turned us to beggars on getting them to pay our debt, so there is no choice. If the regulators do not resolve the matter, what has been foreseen will happen, the services will be withdrawn. We are leaving to the CBN to resolve, if it is not able to resolve this matter, there will be no choice than to withdraw USSD from the banks,” he added.

Deolu Ogunbanjo, a telecom right activist, said Nigerian telecoms’ subscribers should sue the banks if they couldn’t use the USSD for their banking transactions by May ending, according to Daily Trust.

Ogunbanjo, who is the president of the National Association of Telecom Subscribers of Nigeria (NATCOMS), said the telcos wouldn’t be doing anything wrong if they eventually disconnect the banks.

Recall that in 2019, telcos sought to charge banks N4.50 for every 20 seconds of USSD usage, but banks opposed this, claiming it would drastically hike transaction costs.

In response to mounting pressures, the operators previously agreed to a new charge of N6.98 per transaction in 2021.

Despite this, the debt has escalated significantly, with Toriola urging the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) to mediate for a resolution.

He emphasized that if the situation remains unresolved, telcos may have no choice but to seek regulatory approval to cut off banks from USSD services entirely.

Toriola lamented that the telecom sector is in critical condition, likening it to being in the “intensive care unit.”

He warned of dire consequences if the government does not allow necessary tariff adjustments, stating, “If the tariff doesn’t go up, we’ll shut down.”

 


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Telecom

IHS Nigeria Hosts Telecom Industry Stakeholders to Discuss Protection of Critical National Infrastructure in Lagos State

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L-r: Deputy Commandant of Corps, Nigeria Security and Civil Defence Corps (NSCDC), Agbetiloye Kolawole, Senior Vice President & Chief Corporate Services Officer, IHS Nigeria, Dapo Otunla, Chairman, Association of Licensed Telecoms Operators (ALTON), Gbenga Adebayo, Zonal Controller, Nigerian Communications Commission (NCC), Tunji Jimoh and President, Association of Telecommunication Companies (ATCON), Tony Emoekpere during the inaugural meeting of telecommunication industry stakeholders in Lagos to discuss the protection of Critical National Information Infrastructure (CNII), hosted by IHS Nigeria at its corporate headquarters in Lagos, recently.
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IHS Nigeria, part of the IHS Holding Limited (NYSE: IHS) (“IHS Towers”) group, one of the largest independent owners, operators, and developers of shared communications infrastructure in the world by tower count, recently hosted a high-level meeting of stakeholders in the telecommunications industry including regulators and law enforcement agencies, at its corporate headquarters in Lagos.

The meeting was organized to develop a multi-stakeholder action plan for the protection of Critical National Information Infrastructure (CNII) assets in Lagos state.

Recognizing the importance of communications infrastructure as the backbone of national security, economic growth and social cohesion, the stakeholders at the meeting convened under the umbrella of the Association of Licensed Telecoms Operators of Nigeria (ALTON) agreed on the urgent need for collaborative solutions to ensure the protection of these vital assets.

The meeting was attended by senior representatives from the telecommunications stakeholder groups and regulatory bodies including the Nigerian Communications Commission (NCC), the Association of Licensed Telecoms Operators of Nigeria (ALTON), Association of Telecommunications Companies of Nigeria (ATCON) and the Lagos State Infrastructure Maintenance and Regulatory Agency (LASIMRA).

Also in attendance were representatives from the Mobile Network Operators (MNOs), and InfraCos as well as the Nigeria Security and Civil Defence Corps (NSCDC), the security agency tasked with the protection of Critical National Infrastructure across the country.

Following extensive deliberations, the stakeholders resolved to establish a working group dedicated to addressing key industry challenges, including the vandalization and theft of telecommunications infrastructure, arbitrary shutdown of base stations, fiber cuts due to road construction and the denial of access by unauthorized individuals by leveraging technology for real-time monitoring and protection, strengthening security measures around telecommunication sites and collaborating more with the security and regulatory agencies to mitigate these challenges.

The stakeholders underscored the need to prioritize deterrence and prevention of these incidents and highlighted the importance of public awareness campaigns to sensitize the host communities and public of the need to protect telecommunications infrastructure in their localities.

Dapo Otunla, Senior Vice President & Chief Corporate Services Officer of IHS Nigeria, commented, “The protection of Critical National Information Infrastructure (CNII) has been a critical concern for all industry stakeholders.

“We are experiencing daily losses of assets, which significantly impact on the quality of service delivered to subscribers. Addressing these issues is paramount to sustaining Nigeria’s digital ecosystem and meeting regulatory expectations.”


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Telecom

MTN Champs Continental Relays: Over 1,000 Athletes Gear Up for Lagos Showcase

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Over 1ooo athletes are already set to participate in the upcoming MTN Champs Continental Relays, taking place between April 9 and April 12 at the UNILAG and Yabatech Sports complexes. Organisers anticipate even more registrations before the April 2 deadline.

MTN Champs is Nigeria’s largest grassroots sports competition, a collaboration between MTN Nigeria and Making of Champs (MoC), providing a platform for young athletes to showcase their talents and potentially represent Nigeria on the global stage.

Osaze Ebueku, Senior Manager, Go-to-Market at MTN Nigeria at the opening ceremony of the MTN Champs Classics events in Benin had emphasised the long-term vision behind MTN Champs: “We’re building future Olympians for Nigeria. MTN Champs is about more than competition. It’s about changing lives.”

The continental relays mark the second leg of the MTN Champs Season 3, following the Classics competition in Benin, which saw 4,371 event entries from 2,056 athletes.

As of March 24, the Lagos leg had already recorded 2,821 event entries across different age categories, highlighting the growing enthusiasm around the competition.

The registered athletes are spread across four categories, with 174 in the Cadet (U-14) category, 388 in Youth (U-17), 270 in Junior (U-20), and 279 in the Senior category.

To ensure smooth participation, organisers have outlined important guidelines. Athletes in the Cadet, Youth, and Junior categories must submit a signed Parental Consent Form, while all registered schools and athletes must collect their competition bibs by April 8 at the competition venue to confirm their participation and secure their place on the start list.

Sports enthusiasts can look forward to an electrifying showcase of emerging talent, as young athletes seize the opportunity to prove their skills on a professional stage.


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Telecom

Again, Labour Fumes, Threatens Shutdown of Telcos over Non-Implementation of 15 Percent Tariff Reduction

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Nigeria Labour Congress (NLC) is threatening to shut down operations of telecommunications companies over their refusal to comment on the 15 percent reduction in telecom tariffs.

Again, Labour Fumes, Threatens Shutdown of Telcos over Non-Implementation of 15 Percent Tariff Reduction

Recall that that organised labour, through the NLC, forced the federal government and NCC to reduce the telecommunications tariff hike from 50% to 35% after threatening to shut down telecom operations and the NCC in response to what it saw as exploitative economic policies amidst excruciating suffering, hardship, and deepening poverty.

The government had previously formed a 10-member committee, consisting of five government and NLC representatives, to deliberate on the thorny topic of tariff hikes within two weeks and report back before making a final decision on the new telecom tariff structure.

Consequently, on Friday, February 21, 2025, the committee, at a meeting conducted in the office of the National Security Adviser (NSA) that lasted nearly three hours, decided on a 15 per cent tariff cut.

According to reports, in accordance with the conditions of the agreement, an official communiqué announcing the tariff reduction was scheduled to be released on Saturday, February 22.

According to Chronicle,iIt was said that the meeting began at 4:00 p.m. and concluded around 7:00 p.m., during which NLC representatives insisted that the tariff hike be withdrawn.

According to sources, after significant pressure from NLC representatives in the 10-man committee, the government and NCC gave up and agreed on the 15% decrease, which the government or NCC should have announced the next day.

However, at the time of this report, no such announcement has been made.

Leaders of the labour union are not taking the government’s failure to announce or implement the 15% tariff decrease lightly, suspecting that they have been duped.

The Labour leaders have therefore resolved to directly confront the NCC and telecommunications operators next week.

Though it has been reported that the date for the start of the industrial action against the NCC and telecom providers has been set and mobilisation is underway, the information is being closely guarded.

One of the leaders of the NLC stated that “We have received directives to commence mobilisation since last week. In fact, the date for the commencement of industrial action against the NCC and telecommunication operators’ offices across the country has been fixed. We have been warned not to disclose the date because the plan is to take all concerned by surprise. We are not giving any notice because we thought we had resolved this matter over a month ago. It is as if we have been scammed. Therefore, we have decided to confront the matter head-on.”

On February 12, the NLC expressed outrage over telecommunications companies’ tariff hikes, despite an earlier agreement with the Federal Government and the NCC.

According to the Labour union, “If the telecommunications companies fail to revert to the old tariff by the end of February 2025, a total shutdown of their operations nationwide will commence on March 1, 2025.”

To demonstrate its seriousness, the NLC declared that, as a first step in resisting the arbitrary tariff hike, it directed that workers and other willing citizens boycott the services of MTN, AIRTEL, and GLO daily between 11:00 a.m. and 2:00 p.m. until the end.

On Tuesday, February 11, NLC leaders issued a communiqué at the conclusion of their Central Working Committee (CWC) meeting in Lokoja, Kogi State, urging workers and citizens to suspend data purchases from telecommunications companies, which have also become one of their most effective tools for exploiting Nigerian citizens.

The communiqué, signed by Joe Ajaero and Emma Ugboaja, Congress’ President and General Secretary, respectively, instructed NLC State Councils and industrial union affiliates to quickly sensitise and mobilise their members and the general public in their jurisdictions.

 


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