Telecom
ALTON Explains Telcos Position on Increase in USSD Charges
The Association of Licensed Telecommunications Operators of Nigeria (ALTON) has offered some explanations on issues around telecom operators’ increase on the charges for the Unstructured Supplementary Service Data (USSD) access to banking.
In statement signed by Gbenga Adebayo, chairman of Association, ALTON noted that: “in order to accelerate the adoption of financial services on USSD, the banks partnered with our members to zero-rate the USSD access to end-users, while the banks bore the cost for the provision of service.
“Based on this arrangement, the banks took on the responsibility of billing customers and paid our members for use of the USSD infrastructure from the service fees deducted from the customer’s bank account. These service fees charged by the banks, were however far in excess of the costs remitted to our members by the Banks for providing the USSD platform and have since remained so.
“Following the issuance of the USSD Pricing Determination by the Nigerian Communications Commission which resulted in a price review of USSD service by our members, the banks stated that they would no longer pay for USSD service delivered to their customers and requested our members to charge customers directly for use of the USSD channel.
This billing methodology where the Banks customer is directly charged USSD access fees by our members irrespective of the service charges that the bank may subsequently apply to the customers’ bank account is called “End-User Billing” which the banks specifically demanded that all our members implement. The banks, however, provided no assurances to our members that such service fees charged to customers’ bank accounts for access to bank services through the USSD channel will be discontinued post implementation of end-user billing by our members.
“The removal of these service fees by the banks would have meant that if bank customers were charged only the USSD costs communicated by our members per USSD session, bank customers will be paying far less than what they are currently being charged by the banks which in some instances are as high as N50. Additionally the banks and telco’s will be applauded for collaborating towards the financial inclusion objectives of the Federal Government.
“Our members were however concerned that the banks were unlikely to discontinue the USSD service fees charged by the banks when customers utilize the USSD channel thereby resulting in double and over billing, whereby our members charge consumers for the USSD access from their airtime and the Banks still proceed to charge the same consumers a service charge from their bank accounts. In the interest of the consumers, our members challenged the implementation of end-user billing until a formal request for its implementation was received from the Body of Bankers Chief Executive Officers and several banks specifically demanding that end-user billing be implemented.
“In view of the opposition to the implementation of end-user billing by customers, our members, as responsible and responsive corporate citizens are committed to safeguarding consumer interests, and in this regard, we are willing to explore mutually beneficial solutions which ensure that costs associated with the provision of USSD services as determined by the Nigerian Communications Commission are fully recovered by our members and customers are not billed twice for the same service and by different institutions which is what end-user billing advocated by the banks will entail.
“In this vein, we call on the Nigerian Communications Commission and the Central Bank of Nigeria to, as a matter of priority, convene a meeting of the financial and telecoms industry stakeholders to address this issue for the benefit of the consumers and other stakeholders”.
Nigerian Communications Commission (NCC) has thrown its weight behind the upcoming Telecom Sector Sustainability Forum (TSSF 7.0), confirming its role as the headline keynote speaker for the Lagos event.
Over the years, the Telecoms Sector Sustainability Forum (TSSF) has evolved into a landmark industry convergence platform and an actionable catalyst for policy alignment, driving critical dialogue around the regulatory, economic, and infrastructural frameworks required to sustain Nigeria’s digital economy.
Taking place on 16th September, 2026, at the Radisson Blu Hotel, Ikeja, Lagos State, the seventh edition of the Telecoms Sector Sustainability Forum (TSSF 7.0), organised under the aegis of Business Remarks, will bring together key stakeholders driving the next phase of Nigeria’s telecommunications and digital growth.
Themed “Rethinking Nigeria’s Digital Infrastructure Strategy to Attract Investment and Drive Innovation”, TSSF 7.0 will address some of the sector’s most pressing priorities, such as policies, digital infrastructure expansion, digital inclusion, good connectivity, partnerships and investments needed to accelerate Nigeria’s next wave of innovations, digital transformation and economic growth.
Organised by Business Remarks, the forum has consistently brought together policymakers, mobile network operators (MNOs), infrastructure providers, data centre operators, policy advocates and financial technology stakeholders to dissect the pressing challenges facing the telecommunications ecosystem and chart a sustainable path forward.
Past editions have successfully addressed pivotal industry shifts, ranging from broadband penetration strategies, human capital flight, mobile virtual network operators (MVNOs) sustainability and infrastructure deficit funding to the operational integration of emerging technologies. By providing a neutral, high-level platform where regulators like the Nigerian Communications Commission (NCC) can interface directly with private sector players, the forum plays a vital role in ensuring that regulatory frameworks evolve in tandem with market realities.
Speaking about the event, the Convener, Bukola Olanrewaju, said the Nigerian telecoms sector investment has grown to $75.6 billion as of 2025, with a planned investment of over $1.38 billion in network capacity upgrades in 2026 targeted to enhance infrastructure resilience, boost coverage and improve quality of service for subscribers nationwide.
“As the industry faces a new frontier defined by deepening 5G and 4G penetration, expanding fibre optic networks, and complex macroeconomic pressures, the need to meet the growing demands for digital services while remaining profitable has become the defining challenge of the modern telecommunications landscape.”
At a time when investment in connectivity, subsea cables, fibre networks, data centres, cloud infrastructure and cybersecurity is reshaping the country’s digital landscape, TSSF remains a vanguard of thought leadership and industry engagement, fostering the public-private collaborations necessary to safeguard the backbone of Nigeria’s digital transformation.
Nigerian Communications Commission (NCC) has reaffirmed its commitment to promoting efficient broadband infrastructure deployment in Nigeria through collaborative implementation of the Dig Once Policy.
L-R: Prof. Olalekan Yinusa, Executive Director, Policy, Strategy and Research, Nigeria Governors’ Forum; Mr. Ayuba Shuaibu, Director, Policy Competition and Economic Analysis, Nigerian Communications Commission, NCC; Engr. Nadungu Gagare, Permanent Secretary, Federal Ministry of Communications, Innovation and Digital Economy; Dr. Helen Aderibigbe Adeniyi, Hon. Commissioner, Ministry of Innovation Science and Technology, Kogi State, during the 2nd Stakeholders ‘ Consultative Forum on the Study to Develop a Mechanism and Cost-Based Structure for Sharing Duct Built Under The Dig-Once Policy in Nigeria, on the 8th July 2026, at the NCC Annex Office Mbora Abuja.
The Commission gave the assurance at the Second Stakeholders’ Consultative Forum to Develop a Pricing Mechanism and Cost-Based Structure for Sharing Ducts Built Under the Dig Once Policy in Nigeria, held at the NCC Annex Office, Mbora, Abuja, on Wednesday.
The forum brought together representatives of federal and state government institutions, telecommunications operators, infrastructure companies, industry associations, development partners and other key stakeholders to deliberate on the interim findings of the study and provide input towards the development of a transparent, equitable and cost-based framework for sharing underground duct infrastructure.
Speaking at the event, NCC’s Director, Policy, Competition and Economic Analysis, Mr Ayuba Shuaibu, said the consultative engagement underscored the Commission’s commitment to an open, transparent and inclusive regulatory process that accommodates the interests of infrastructure providers, network operators, public institutions and consumers.
Shuaibu noted that the proposed framework is intended to encourage infrastructure sharing, improve asset utilisation, reduce the cost of broadband deployment and facilitate the expansion of telecommunications infrastructure across the country.
According to him, the study is designed to establish a fair and transparent pricing mechanism for sharing underground ducts deployed under Nigeria’s Dig Once Policy, which encourages the installation of telecommunications ducts during road construction and rehabilitation projects. He explained that this would enable future fibre deployments without repeated road excavations.
“The Commission remains committed to a transparent, inclusive and consultative process. Our objective is to arrive at a pricing structure that balances the interests of infrastructure providers, access seekers and, ultimately, consumers, while also encouraging continued investment in broadband infrastructure.
“We encourage frank, constructive and solution-oriented contributions that will strengthen the final outcomes of this study,” Shuaibu said.
He added that observations, recommendations and contributions received from stakeholders during the consultation would be reviewed and incorporated into the final study report to ensure that the resulting framework is practical, commercially sustainable and responsive to industry realities.
Delivering the keynote presentation, the consultant, Mr Olugbenga Olabiyi, Managing Director of Dimension Data Limited, observed that passive infrastructure, including ducts, conduits, manholes and related facilities, constitutes one of the most capital-intensive components of broadband network deployment globally.
He said infrastructure sharing had emerged as an effective strategy for reducing deployment costs, improving efficiency and accelerating broadband expansion.
Olabiyi stated that Nigeria’s adoption of the Dig Once Policy presents an important opportunity to strengthen coordinated infrastructure deployment, minimise avoidable road excavations, improve utilisation of existing infrastructure and support broader broadband access across the country.
He also emphasised the importance of developing a predictable, transparent and equitable access framework, noting that inconsistent pricing models and unclear access conditions could undermine investment incentives and limit the benefits of infrastructure sharing.
“For Nigeria, where broadband expansion remains a national priority under the National Broadband Plan, successful implementation of the Dig Once Policy could become one of the most impactful infrastructure reforms in our telecommunications history.
“However, infrastructure sharing succeeds only when access is governed by fairness, transparency, predictability and effective market oversight.
“Without an equitable access framework, owners of shared infrastructure may inadvertently or deliberately create barriers to entry through excessive pricing, restrictive commercial conditions or discriminatory access practices. Such outcomes would undermine the objectives of the Dig Once initiative and discourage investment rather than promote it.
“This is why the NCC’s initiative to develop a cost-based pricing framework deserves commendation. A transparent and objective pricing methodology will provide confidence to investors, infrastructure companies, mobile network operators, Internet Service Providers, fibre operators and all participants within the communications ecosystem,” he said.
Participants at the forum reviewed the interim findings and provided recommendations on the proposed pricing methodology, implementation considerations and cost elements. Discussions focused on ensuring that the policy supports efficient infrastructure deployment while balancing the interests of infrastructure providers, access seekers and consumers.
The stakeholder consultation builds on earlier engagements conducted by the Commission on the study. It also aligns with the NCC’s commitment to implementing regulatory initiatives that promote broadband expansion, encourage infrastructure sharing and advance Nigeria’s digital transformation agenda.
MTN Nigeria is accelerating investments in network expansion and modernization to address rising demand for mobile and data services across the country.
The operator is deploying additional base stations, upgrading existing infrastructure, and expanding fiber connectivity to improve network capacity, coverage, and service quality.
The investments are designed to support increasing smartphone adoption, higher data consumption, and the growing use of digital services by consumers and businesses.
MTN said the expansion aligns with its long-term strategy to enhance customer experience while strengthening Nigeria’s digital infrastructure.
The company expects the ongoing upgrades to improve connectivity, support economic growth, and enable broader access to reliable telecommunications services as demand for high-speed broadband continues to increase.
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