USSD charges stay despite failures- ALTON

Gbenga Adebayo, the chairman of the Association of Licensed Telecoms Operators of Nigeria (ALTON), has defended controversial telecom charges, saying operators must still be paid even when banking transactions fail.

Speaking on Nigeria Info FM 99.3 in a live programme, monitored by BusinessDay, Adebayo addressed growing public anger over the N6.98 USSD fee, data expiry policies, and the limited availability of toll-free lines.

He compared telecom services to a transport system, explaining that operators provide the connection that enables users to access banking platforms. “The phone company is like a taxi taking you to the bank’s digital office. Even if the bank’s system is down when you get there, you still have to pay the taxi man,” he said.

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His comments come as regulators, including the Nigerian Communications Commission (NCC) and the Central Bank of Nigeria (CBN), review disputes between banks and telecom operators over failed USSD transactions and billing practices.

Adebayo explained that each attempt to complete a USSD transaction consumes network resources, regardless of whether the bank successfully processes the request. This, he said, justifies the access charge applied to every session.

On data expiration, he rejected claims that telecom operators steal unused data, noting that bundles are sold within fixed validity periods such as seven or 30 days. However, he clarified that users can retain unused data through rollover options if they renew subscriptions before expiry.

“You cannot keep data forever, but you can extend it without losing what you have by resubscribing,” he said.

He also addressed misconceptions about toll-free numbers, describing them as reverse charge services where businesses or government agencies bear the cost of calls. According to him, economic pressures have made many organisations unwilling to sustain such services, reducing their availability in Nigeria.

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The ALTON chairman pointed to deeper structural issues affecting service quality, including power shortages and infrastructure vandalism. While acknowledging that the NCC continues to sanction operators for poor service, he said penalties alone cannot fix the underlying challenges.

He called for better public understanding of how telecom services work and urged stronger collaboration to protect critical infrastructure.

Adebayo’s remarks highlight a growing tension in Nigeria’s digital economy: consumers expect seamless, low-cost services, while operators face rising costs and technical constraints.

The ongoing NCC-CBN review could shape future policy on USSD pricing and accountability, especially as digital banking becomes more central to financial inclusion.