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Banks Fail to Remit Funds as USSD Debt Reaches N120Bn

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The Unstructured Supplementary Service Data (USSD) platform is experiencing an extensive crisis, and although talks between the banks and telecommunications operators are ongoing at the regulatory level to find a cooperative solution, the service providers claimed that the debts owed them by defaulting banks have reached N120 billion.

Banks Fail to Remit Funds as USSD Debt Reaches N120Bn

Bizwatchnigeria.ng reported that some N100 billion in indebtedness as of the first quarter of 2023.

However, despite the fact that the amount still owing has increased by N20 billion, the Association of Licensed Telecoms Operators of Nigeria (ALTON) claimed that the banks are still withholding remittances.

Gbenga Adebayo, chairman, ALTON, stated that the company’s debt had reached N120 billion, who verified that there had been regulatory-level conversation, stated: “Discussions are ongoing, and there has been very high-level regulatory intervention by the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC).

While some banks are making payments, others appear to be holding off until the service is discontinued in an effort to test our persistence in getting them to do so.”

“We would temporarily stop providing USSD service to debtor banks if the CBN/NCC intervention fails. No industry can endure the amount of the mounting debt, which is currently in the neighborhood of N120 billion, He said.

“Because these are services for which money has been taken from their customers, the banks have a moral obligation.” The Ministry of Communications and Digital Economy, CBN, and NCC had underlined that starting on March 16, 2021, USSD services would be taxed at a flat rate of N6.98k per transaction, despite the fact that the crisis has been ongoing for more than five years.

According to the agreement, banks would not charge customers extra fees for using the USSD channel and would instead collect the new USSD fees directly from customers on behalf of mobile network operators (MNOs).

A typical USSD session, which lasted for 20 seconds, had a pricing cap set at $4.98 for each session prior to the N6.98k per transaction regime.

When the N6.98k problem reached a breaking point, NCC and CBN issued a joint statement that said: “This replaces the current per session billing system, providing a considerably cheaper average cost for subscribers to improve financial inclusion. This method is open and will guarantee that the sum stays the same regardless of how many sessions are involved in a single transaction.

While ePayment transactions reached N49.48 trillion in March, service quality difficulties in the area continue unabatedly and pose a threat to the sector’s successes.

Investigation by bizwatchnigeria.ng revealed that customers are still dissatisfied with the bank apps and USSD platforms they use to access services, which they complained were frequently very slow and unresponsive.

Due to this problem, many clients now swarm the banking halls virtually every day to voice their objections. Kehinde Alesh, a Zenith Bank client, revealed that the bank’s app was unresponsive last week. “We were unable to use the banking app for over two days. Even more shocking, the app crashed. Many transactions are still pending. The Central Bank of Nigeria must take action on this issue, He stated.

Banks must make greater infrastructure investments! The software is sluggish, and USSD transactions don’t work. To witness the crowd, you ought to have been at the bank. Just annoying, really. Before the sector collapses, the CBN needs to move quickly.

In addition to the demand for the availability of the new notes, Gabriel Okeowo, Country Director of BudgiT Foundation Nigeria, recently discussed the bank’s IT infrastructure.

If the old Naira notes are what are now in use, even the new Naira notes cannot be purchased. Additionally, as we speak, the lines are still present, electronic transactions are still declining, and money is typically not refunded within 24 hours.

“In addition, the Internet infrastructure is not sufficiently developed to support efficient electronic transactions. I see a potential of extending the deadline for the usage of old naira.

 

 

 

 


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Airtel Launches AI Spam Alert in Nigeria

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Airtel, one of Africa’s leading telecommunications providers, has launched a groundbreaking Artificial Intelligence (AI)-driven Spam Alert Service in Nigeria, aimed at tackling the growing issues of spam messages and fraud.

Airtel Launches AI Spam Alert in Nigeria

Speaking at the launch event held in Lagos, Dinesh Balsingh, Managing Director of Airtel Nigeria, revealed that the innovative service will be rolled out across Airtel’s 14-country footprint.

Notably, Airtel subscribers in Nigeria can access the service at no additional cost.

The AI-powered solution detects and alerts users in real-time about suspected spam SMS, safeguarding them from potential fraud and cyber threats.

Highlighting the company’s commitment to technology-driven customer solutions, Balsingh said, “this is a game changer for the telecoms industry in Africa and as we move forward, we will continue to address customer challenges through proactive tech-driven solutions.”

The service is built on a proprietary dual-layer protection system that analyses over 250 parameters, including sender behavior, SMS frequency, and target location patterns.

Capable of filtering over 1.5 billion messages within two milliseconds, it also features a centralised database of blacklisted URLs to warn users about suspicious links.

“With the launch of this AI-powered Spam Alert Service, Airtel Africa has reaffirmed its commitment to delivering innovative solutions that enhance customer experience, safety, and digital inclusion across the continent.

“As Airtel continues to expand its footprint, it is expected that this pioneering solution will set a new standard for the telecoms industry in Africa.

“Also, as the digital landscape continues to evolve, Airtel Africa remains at the forefront, pushing boundaries and shaping the future of telecommunications in Africa,” said Balsingh.

He emphasised that as Airtel continues to expand, the pioneering solution will set new benchmarks for Africa’s telecom industry.

The initiative has received commendation from key stakeholders, including Dr. Bosun Tijani, minister of Communications, Innovation, and Digital Economy.

Dr. Tijani lauded Airtel’s efforts in boosting Nigeria’s technology ecosystem, particularly through solutions that enhance online security and foster digital inclusion.

Similarly, Dr. Aminu Maida, executive vice chairman of the Nigerian Communications Commission, hailed the service as a major step in addressing the security challenges faced by telecom subscribers.

As the digital landscape evolves, Airtel Africa continues to push the boundaries of innovation, shaping the future of telecommunications across the continent.


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NCC, ALTON, LASIMRA Engage to Strengthen Telecom Infrastructure in Lagos

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The Lagos State Infrastructure Maintenance & Regulatory Agency (LASIMRA) recently embarked on a historic working visit to the Nigerian Communications Commission (NCC) Headquarters in Abuja.

The LASIMRA delegation was led by its Chief Executive Officer, Prince Oyekanmi Elegushi, alongside members of the senior management team.

The delegation was warmly received by the Executive Vice Chairman of the NCC, Dr. Aminu Maida, and the Commission’s management team. The visit marked a significant milestone in strengthening collaboration between LASIMRA and NCC towards improving the telecommunications sector in Lagos State.

The meeting was further enriched by the presence of representatives from the Association of Licensed Telecommunications Operators of Nigeria (ALTON), including the Chairman, Engr. Gbenga Adebayo, and the Publicity Secretary, Mr. Damian Udeh.

Discussions focused on addressing critical issues affecting the industry, with particular emphasis on the security and protection of telecom infrastructure.

LASIMRA reiterated the need for effective oversight and safeguarding of these essential assets under the jurisdiction of the Lagos State Government.

A key highlight of the meeting was the Tower Enumeration Project—a comprehensive audit initiative aimed at identifying all distressing communication infrastructure across Lagos.

LASIMRA also raised concerns about damages to public infrastructure caused by some operators during fibre deployment and reaffirmed its commitment to enforcing appropriate penalties to preserve public assets.

The parties agreed on the importance of a unified strategy involving NCC, LASIMRA and other stakeholders to bring order to the sector, improve connectivity, and ensure widespread access to high-quality telecommunications services across Lagos.

LASIMRA expresses its sincere appreciation to the NCC for its support and collaboration. Together, we remain committed to building a more connected, secure, and digitally inclusive Lagos.

 


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NANS Issues Fresh Protest Notice over Telecom Tariff Hike

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National Association of Nigerian Students (NANS) has condemned the recent increase in tariffs by telecommunications companies in Nigeria, threatening to embark on a nationwide protest to compel a reversal.

NANS Issues Fresh Protest Notice over Telecom Tariff Hike

In a statement jointly signed on Thursday in Abuja by Comrade Anzaku Shedrack Ovye, national secretary-general, NANS and Comrade Samson Ajasa Adeyemi, the student body gave the Federal Government and telecommunications companies a 72-hour ultimatum to reverse the tariff increase.

The students warned that upon the expiration of the ultimatum, students across the country would be mobilized for a series of street protests nationwide to ensure a reversal.

They argued that the arbitrary action of telecommunications companies has further exacerbated the financial burden on millions of Nigerians, particularly students and youths, who are among the dominant end-users of their services.

The statement read in part:

“This decision, which has led to a significant rise in the cost of calls, data, and other communication services, is both unjustifiable and insensitive, given the prevailing economic challenges faced by the populace.

“NANS views this development as a blatant disregard for the welfare of Nigerian citizens and an affront to the principles of affordability and accessibility that should govern the telecommunications sector.

“This administration is committed to promoting the welfare of Nigerian students; hence, it will vehemently oppose any tendency that does not align with this vision.

“NANS is deeply concerned about the adverse impact this tariff hike will have on students, many of whom rely heavily on affordable telecommunications services for academic research, virtual learning, and staying connected with their families.

“Therefore, it is worrisome to comprehend the justifications for these increments, as NANS considers this action a direct threat to the security of Nigerian students and an attempt to further impede their ability to navigate their academic endeavors, maintain familial connections, and secure legitimate personal incomes, particularly for independent students responsible for their upkeep.

“We hereby issue a 72-hour ultimatum to telecommunications companies, the Honourable Minister for Innovation, Digital and Blue Economy, Dr. Bosun Tijani, and the Nigerian Communications Commission to reverse this tariff increase and provide a clear roadmap for ensuring affordable telecommunications services for all Nigerians.

“Failure to comply with this ultimatum will leave NANS with no choice but to mobilize students across the nation for a series of peaceful protests to demand justice, accountability, and a comprehensive audit of activities in the telecommunications sector,” NANS stated.

The leadership of NANS maintained that as student representatives, they would not stand idly by while the rights and welfare of Nigerian students, which they have vowed to protect, are trampled upon by greed, “corporate capitalism,” and regulatory complicity.

NANS also called on the Federal Government to intervene promptly and decisively to address this issue.

Additionally, they urged telecommunications companies to prioritize the interests of their customers over profit margins and to engage in meaningful dialogue with stakeholders to find sustainable solutions rather than inflict further hardship on Nigerians who are already struggling economically.

“As the voice of Nigerian students, NANS remains committed to advocating for policies and actions that promote equity, fairness, and the overall well-being of all Nigerians.

“We will continue to hold all parties and duty-bearers accountable to ensure that the rights of students and citizens are protected,” the statement added.


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