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Banks Wriggle to Avoid Payment of N43Bn Owed Telcos

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The dispute over the N42 billion owed telecommunications operators in the country by money deposit banks took a new dimension at the weekend as the banks claimed they are not indebted to the telcos for using Unstructured Supplementary Service Data (USSD) platforms to provide payment services.

Banks Wriggle to Avoid Payment of N43Bn Owed Telcos

Banks collect the money for the service on behalf of the telcos, which are the owners of the infrastructure.

Telcos believe the banks are bent on bullying them to maximize their revenues while the banks on the other hand say there is no such thing as an obligation due to the operators.

Investigations showed that the telcos never stopped the service despite mounting debt, but the minute the banks went into a dispute with telcos on commission payment, the banks pulled the plug with total disregard for customers.

Context

The telcos and banks were in March caught in a web of claims and counter charges as the telcos under the aegis of Association of Licensed Telecommunications Operators of Nigeria (ALTON) demanded N42 billion the banks owed them.

ALTON threatened to withdraw USSD services to financial service providers due to huge indebtedness to telecom network operators.

The telcos explained that the service withdrawal had become necessary due to the lack of agreement on a payment structure with the banks that did not involve the end-user being asked to pay.

Intervention

As the dispute lingered, the Central Bank of Nigeria (CBN) and Nigerian Communications Commission (NCC) waded in and issued a joint statement on the March, 16, 2021.

The statement signed by Osita Nwanisobi, head, Corporate Communications, CBN and Dr. Ikechukwu Adinde, director, Public Affairs, NCC, read:

Joint Statement by Central Bank of Nigeria & Nigerian Communications Commission on Pricing of Unstructured Supplementary Service Data (USSD) Services

Mobile Network Operators (MNOs) and Deposit Money Banks (DMBs) have had protracted disagreements concerning the appropriate USSD pricing model for financial transactions. This resulted in the accumulation of outstanding fees for USSD services rendered leading to threat of service withdrawal by the MNOs.

USSD is a critical channel for delivering financial services, particularly for the underserved and/or financially excluded. To resolve the lingering dispute and ensure uninterrupted services to customers on this channel, the Honourable Minister for Communications and Digital Economy on March 15, 2021 chaired a meeting of key stakeholders to discuss an amicable resolution in the interest of the general public.

Represented at the meeting were the various MNOs, Association of Licensed Telecommunications Operators of Nigeria (ALTON), Association of Telecommunications Companies of Nigeria (ATCON), DMBs (represented by the Chairman, Body of Bank CEOs) and the sector regulators – Central Bank of Nigeria (CBN) and Nigerian Communications Commission (NCC).

We are pleased to announce that after comprehensive deliberations on the key issues, a resolution framework acceptable to all parties was agreed thus:

  1. Effective March 16, 2021, USSD services for financial transactions conducted at DMBs and all CBN – licensed institutions will be charged at a flat fee of N6.98k per transaction. This replaces the current per session billing structure, ensuring a much cheaper average cost for customers to enhance financial inclusion. This approach is transparent and will ensure the amount remains the same, regardless of the number of sessions per transaction.
  2. To promote transparency in its administration, the new USSD charges will be collected on behalf of MNOs directly from customers’ bank accounts. Banks shall not impose additional charges on customers for use of the USSD channel.
  3. A settlement plan for outstanding payments incurred for USSD services, previously rendered by the MNOs, is being worked out by all parties in a bid to ensure that the matter is fully resolved.
  4. MNOs and DMBs shall discuss and agree on the operational modalities for the implementation of the new USSD pricing framework, including sharing of Application Programme Interface (APIs) to enable seamless, direct and transparent customer billing.
  5. DMBs and MNOs are committed to engaging further on strategies to lower cost and enhance access to financial services.
  6. With the above resolutions, the impending suspension of DMBs from the USSD channel is hereby vacated. Therefore, DMBs shall no longer be disconnected from the USSD channel.

The general public is reminded that the USSD channel is optional, as several alternative channels such as mobile apps, internet banking and ATMs may be used for financial transactions.

The CBN and NCC shall continue to engage relevant operators and stakeholders to promote cheaper, seamless access to mobile and financial services for all Nigerians.

Twist

But at the weekend, Nigerian banks claimed they are not indebted to the telcos for using the Unstructured Supplementary Service Data shortcode service to provide payment services.

“There is no such thing as an obligation due from banks to telcos,” Herbert Wigwe, chief executive officer of Access Bank Plc, said on an investor call in Lagos, according to Bloomberg.

“We chose not to make a public statement out of it because it is not appropriate for us to be found fighting with telcos in public,” he said Thursday.

Wigwe is the head of a team of bank CEOs that has been in discussion with MTN Nigeria to resolve a dispute that led some banks to cut off the company from their banking platforms last week.

Implications

The banks’ reluctance to pay the N42billion debt has far reaching effects on both the telcos and subscribers.

Already, the telcos have lost some ₦30 billion as a result of inactive SIM cards occasioned by the NIN-SIM registration.

And according to figures by the NCC, telecom subscribers in the country dropped by 11.84 million in four months.

The unpredictable nature of business in Nigeria is the reason why the telecommunication sector is struggling to attract new investments’.

From the monetary authorities playing god with foreign exchange to multiple taxes to epileptic power supply, the industry is swimming in challenges.

In trying to control both the demand and supply of dollars, the CBN plays god in forex market, and scares off investors. Telcos rely on forex to import equipment for expansion.

Telcos are still seen as cash cows and are subjected to all kinds of taxes, leveis and fees by all tiers of governments.

Because of Nigeria’s notorious unreliable power supply, operators are forced to provide their own electricity to power their facilities.

For now, telcos in Nigeria are clutching expensive bags of operating expenses and subscribers are bearing the burden.

Unfair Practices

The banks intended to hurt the telcos by pulling the plug on the USSD service but ended up hurting customers to secure their profit.

The silence of Federal Competition and Consumer Protection Commission (FCCPC) is worrying.

The action the banks took is collusion of the highest order and goes to the root of competition and anti-trust.

And it is worrying that ministry of Communications and Digital Economy, the NCC and CBN have not spoken out against the lingering settlement that further impoverishes consumers.


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FG Approves GIS-enabled Digital Postcode to Tackle Logistics Gaps, Boost E-commerce

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Federal Executive Council has approved the rollout of a nationwide alphanumeric digital postcode system, a move believe will modernise the country’s addressing framework and support growth in logistics, e-commerce and emergency services.

The approval, granted under president Bola Ahmed Tinubu, paves the way for the introduction of a Geographic Information System (GIS)-enabled postcode platform designed to provide more accurate and standardised location data across Africa’s most populous nation.

Bosun Tijani, the federal minister of Communications and Digital Economy of Nigeria, who disclosed this via X, said the reform, developed in collaboration with Nigerian Postal Service (NIPOST), would replace inconsistent and often manually described addresses with a structured alphanumeric format tied to geospatial coordinates.

Nigeria’s current addressing system has long posed challenges for postal deliveries, emergency response teams and e-commerce operators, particularly in densely populated urban areas and rapidly expanding peri-urban communities where street naming and house numbering remain irregular.

The new system is expected to improve the precision of mail and parcel sorting, reduce failed deliveries and shorten turnaround times for logistics firms serving a fast-growing online retail market.

Tijani affirmed that the digital postcode framework would extend beyond postal operations, describing it as a foundational layer for national planning and public service delivery. By embedding geographic intelligence into address identification, authorities expect better data integration across agencies responsible for health, security, taxation and urban development.

The reform aligns with Nigeria’s broader digital economy strategy, which aims to build core infrastructure to support fintech, e-commerce and government digitisation efforts.

Industry executives have repeatedly cited weak address verification systems as a bottleneck for expanding nationwide logistics coverage, particularly outside major commercial hubs such as Lagos and Abuja.

Under the new framework, each location will be assigned a unique alphanumeric code linked to geospatial data, allowing for machine-readable sorting and integration into mapping systems. Authorities say this will enable faster emergency response deployment and more efficient route planning for both public and private sector operators.

The government did not provide a timeline for full nationwide deployment but indicated that implementation would proceed in partnership with NIPOST and other relevant agencies.

Officials described the approval as part of efforts to create an enabling environment for a modern and inclusive digital economy, positioning accurate addressing as critical infrastructure in the same category as broadband connectivity and data centres.

For businesses and consumers alike, the shift could mark a structural change in how goods, services and public resources are delivered across the country.


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GSMA, African Operators, Others to Launch Low-cost 4G Devices

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A co-ordinated effort between the GSM Association (GSMA), six African operators and original equipment manufacturers (OEMs) will pilot $40 (R654) entry-level 4G smartphones in six African nations this year.

This, as 710 million of Africa’s population live close to a 4G broadband signal, but have never gone online, with a further 68% not owning a device.

On the continent, entry-level smartphones cost 26% of the average person’s income. For the poorest 40%, the cost jumps to 64% of their income, and for the next 20%, the cost reaches 87%, data from the GSMA has shown.

To address the cost-prohibitive hurdles, the industry body has been a strong advocate of bringing down the cost of devices. It believes that affordable 4G smartphones at scale could bring tens of millions of people online, unlocking access to education, healthcare, financial services, e-commerce and artificial intelligence (AI)-powered tools.

Angela Wamola, head of GSMA Africa, said that the pilots will launch in six countries: DRC, Ethiopia, Nigeria, Uganda, Tanzania and Rwanda.

She added that the pilots build on the minimum specifications for low-cost 4G devices unveiled at MWC Kigali in 2025 and represent a step forward in turning industry alignment into tangible, on-the-ground impact.

The specifications focus on screen size, battery life and storage for a meaningful device that creates utility, particularly in the age of AI, Wamola added.

“Affordability and access of the device is critical for us to resolve. At the same time, getting a device is also about a willingness to purchase, which is about utility. Creating utility relevant to people’s lives, be it in manufacturing, agriculture, information, health and education, etc. It’s about bringing that content and government services online.

“The cherry on top is about local languages. People want to consume relevant content, but it must be in their local language.”

“As the devices land in the hands of the people, the languages will be readily available. Our small, medium-sized entrepreneurs, developers, innovators can begin to create content and products for our population. This is the magic that needs to happen to close the usage gap in the shortest time possible.”

The announcement, made in Barcelona, moves a step further from MWC Kigali by solidifying the vendors and operators that responded to the minimum specifications for the $40 device call, according to Wamola.

The marketplace now consists of private sector operators, as well as original equipment manufacturers that are engaging the six countries where the pilots will take place, she stated.

“At the same time, the GSMA is working with the governments of those nations to understand what fiscal policy incentives can be placed for these $40 entry-level devices, so that they land at the hands of the customer at the same price point.”

Wamola also indicated the coalition is taking a page out of the South African government’s book. It removed the 9% ad valorem tax, commonly referred to as luxury tax, on smartphones within the below-R2 500 price range.

Ad valorem duties are taxes levied on commodities as a certain percentage of their value. For smartphones, the duties are charged at a flat rate of 9%, classifying them as luxury goods.

In May, National Treasury confirmed the luxury tax on entry-level smartphones had been removed.

The GSMA saw how the market responded to adopting those devices when the government of South Africa removed the 9% luxury tax, she stated. “For us, it’s about replicating those lessons across Africa, so that governments can also adopt those.”

Vivek Badrinath, director-general of the GSMA, added: “Affordable smartphones are the gateway to digital and financial inclusion, economic opportunity and innovation; 3.1 billion people have mobile coverage but are not connected to the mobile internet.

“Together with the G6 group of leading African operators, we are sending a clear demand signal to bring low-cost 4G devices to market. In a global context of rising memory costs, governments have an important role in bridging the usage gap. Removing taxes and import duties on entry-level 4G smartphones will be critical to achieving scale.”


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TD Africa, Cisco and Arravo Host C-Level Event on Secure Networking

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The future of secure and intelligent networking took centre stage over the weekend, as leading technology distributor, TD Africa, in collaboration with Cisco and Arravo Technology, hosted an exclusive C-level customer engagement focused on strengthening enterprise security and building resilient network infrastructures.

TD Africa, Cisco and Arravo Host C-Level Event on Secure Networking

TD Africa

The event brought together senior decision-makers from various organisations to explore how businesses can drive resilience and digital transformation through Cisco’s Enterprise Networking, Meraki, and Security solutions.

The session provided practical insights tailored to the evolving needs of today’s digital enterprises, with discussions centred on enabling smarter, scalable network environments while strengthening cybersecurity frameworks.

Speaking at the event, Abiodun Idowu, Head of Enterprise Business at TD Africa, highlighted the growing need for organisations to adopt integrated networking and security strategies in an increasingly complex digital landscape.

“As businesses accelerate their digital transformation journeys, the need for secure, intelligent, and scalable networking solutions has never been greater.

“Through our collaboration with Cisco and Arravo, we are empowering organisations with the tools and insights required to build resilient infrastructures that support innovation while safeguarding critical operations,” he said.

The session also featured an in-depth technical presentation by Theodore Chukwudi, Cisco Solutions Architect, who led discussions on Cisco Meraki’s Cloud-Managed Networking and its role in simplifying network management while enhancing visibility and security.

“Cisco Meraki enables organisations to deploy and manage networks with greater agility and confidence. By leveraging cloud-managed solutions, businesses can enhance operational efficiency, improve security posture, and respond more effectively to emerging threats,” Chukwudi noted.

Offering further insight, Ayantola Olaayan, Director, Enterprise Business at Arravo, emphasised the importance of collaboration in helping organisations navigate modern networking demands. “Strategic partnerships like this enable us to deliver solutions that are both innovative and practical.

“By combining Arravo’s enterprise expertise with Cisco’s technology and TD Africa’s distribution strength, we are helping businesses simplify complexity and build secure, future-ready networks that support long-term growth,” he noted.

Participants gained valuable perspectives on how Cisco’s enterprise networking and security technologies can help mitigate risks, protect digital assets, and support business continuity in an increasingly connected environment.

TD Africa’s collaboration with Cisco and Arravo on this engagement reinforces its commitment to equipping organisations with the knowledge and solutions needed to navigate modern networking challenges and unlock new opportunities for growth.

 


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