Telecom
Banks Wriggle to Avoid Payment of N43Bn Owed Telcos
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 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:
- 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.
- 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.
- 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.
- 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.
- DMBs and MNOs are committed to engaging further on strategies to lower cost and enhance access to financial services.
- 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.
Nigerian Communications Commission (NCC) has said that more than 5,000 fibre-optic cable cuts linked to road construction, excavation and related civil works were recorded in the first six months of 2026.
The commission said that the damage is disrupting telecommunications services, increasing operators’ costs and exposing businesses and essential public services to avoidable interruptions.
Aminu Maida, executive vice chairman, NCC, disclosed the figure at a stakeholders’ workshop on the protection of fibre-optic infrastructure during road construction and rehabilitation.
He said the scale of the incidents showed the need to prevent damage rather than wait to repair networks after they had been cut
Maida said fibre networks support banking, healthcare, education, government services, commerce, security and emergency communications.
He recalled the widespread telecommunications disruption in February 2024, when fibre cuts affected millions of Nigerians and caused congestion on alternative networks as subscribers switched providers.
He said a Standing Committee on the Protection of Fibre Optic Cables had been established by the Federal Ministries of Works and Communications, Innovation and Digital Economy to improve coordination before, during and after road construction.
The committee was later expanded to include the Office of the National Security Adviser and the Nigeria Security and Civil Defence Corps because of the critical nature of telecommunications infrastructure.
Raphael Adelador, permanent secretary of the Federal Ministry of Works, said road construction and telecommunications infrastructure often occupy the same physical space, making coordination essential.
Adelador called for better mapping of fibre routes and improved information sharing so contractors and consultants know where telecommunications infrastructure is located before excavation begins.
He said damage to fibre networks could lead to service disruptions, lost productivity, financial losses and inconvenience to citizens.
Representing Nadungu Gagare, permanent secretary, Federal Ministry of Communications, Innovation and Digital Economy, Stanley Musa, director of Telecoms and Postal Services, said the protection of telecommunications infrastructure was a shared national responsibility.
The Permanent Secretary said that the government was working with relevant stakeholders to strengthen compliance with technical standards and right-of-way requirements, improve information sharing and develop clearer procedures for infrastructure protection.
Air Vice Marshal Effiom Ewa, director of Critical National Standards and Infrastructure Protection at the Office of the National Security Adviser, said fibre-optic infrastructure had been designated as critical national information infrastructure and warned that damage caused by negligence, interference or actions that expose the infrastructure to damage could attract legal consequences.
Air Vice Marshal Ewa called for strict compliance with established procedures during construction and maintenance activities.
The two-day workshop brought together representatives of government ministries and agencies, security organisations, telecommunications operators, contractors and other stakeholders to develop practical measures for reducing fibre damage during construction projects.
The stakeholders are expected to strengthen coordination, information sharing and accountability so that road development does not undermine the digital infrastructure supporting Nigeria’s economy.
Telecom
ipNX Joins Calls for Innovation-Friendly Ecosystem and Stronger Local Opportunities at Regenesys AI Summit
ipNX Nigeria has joined stakeholders at the Regenesys AI Summit to call for innovation-friendly regulations and stronger local opportunities. Chief Technology Architect, ipNX Nigeria, Oluwaseun Oluboyo, made the call for a collaborative approach to advancing Artificial Intelligence (AI) in Nigeria, and emphasized the need to foster innovation while developing enabling frameworks that support responsible adoption and sustainable growth.
Speaking during a panel session at the summit themed “The Future of Nigeria in the Age of AI,” Oluboyo encouraged business leaders, policymakers and technology stakeholders to create an environment where innovation can flourish through experimentation, collaboration and continuous learning.
“If you don’t try new things, if you only stick to what is familiar, we are not going to go progress as a society or an ecosystem,” he said. “Innovation requires the confidence to explore new ideas, while ensuring that customers remain protected.”
Reflecting on the rapid evolution of AI technologies, Oluboyo noted that governance frameworks should remain adaptable to accommodate emerging innovations and evolving industry needs.
“As technology continues to evolve, it is important that we focus on the outcomes we want to achieve while creating room for innovation. Organisations naturally build on what works, but continuous improvement is essential to unlocking new possibilities.”
He observed that creating a supportive innovation ecosystem will enable organisations to deploy AI responsibly while accelerating digital transformation across industries.
Oluboyo also highlighted the importance of strengthening Nigeria’s technology ecosystem by creating more opportunities for local talent to innovate, build and thrive within the country.
“We should continue creating the environment that makes Nigeria an attractive destination for innovation and enables our brightest talents to contribute meaningfully to national development.”
He noted that sustained investment in digital infrastructure, skills development and innovation ecosystems will be instrumental in positioning Nigeria to maximise the economic and societal benefits of Artificial Intelligence.
Held recently in Victoria Island, Lagos, the Regenesys AI Summit convened technology leaders, policymakers, entrepreneurs and industry experts to examine how Artificial Intelligence is transforming industries, reshaping business models and redefining leadership priorities.
Other speakers on the panel were Ugo Umeseaka, COO, Redtech Limited; Oladele Adedoyin, Partnership Development Manager, Liquid Intelligent Technologies, and Dr Oluwatomi Kogo, Managing Director, Iwosan Lagoon Hospitals.
The summit, themed “The Future of Nigeria in the Age of AI,” provided a platform for meaningful dialogue, knowledge sharing and practical insights into the opportunities AI presents for economic growth, business innovation and national development.
As AI adoption continues to accelerate across Nigeria, conversations such as these remain essential in fostering collaboration among industry, academia and policymakers to ensure Artificial Intelligence is deployed responsibly, inclusively and for the benefit of society.
Google News Initiative (GNI) has selected six Nigerian independent news creators to participate in its Emerging News Voices Growth Lab for Sub-Saharan Africa.
The selected Nigerian creators are Onlinebanker, Adetunji Films, More Branches TV, Wearegst, Iswellthecapitalist and The Republic.
They are part of a cohort of about 20 emerging news creators from across Sub-Saharan Africa participating in the multi-month virtual programme, which runs through September 2026.
The initiative is designed to strengthen the capacity of creator-led and digital-native newsrooms through practical training in artificial intelligence, video production, audience development, direct reader engagement and sustainable revenue strategies.
The GNI said the programme was developed in response to the changing way Nigerians, particularly younger audiences, discover and consume news through social-first channels and digital platforms.
According to the initiative, while creator-led journalism is expanding rapidly, many independent newsrooms operate with limited resources and do not have the same access to technology, training and revenue expertise available to established media organisations.
Participants in the Growth Lab will work with Google trainers and product experts across four key areas.
The first is AI in the newsroom, where participants will receive hands-on guidance on integrating tools such as Gemini, NotebookLM, Google Trends and SynthID into newsroom workflows for research, transcription, translation and verification.
The programme will also focus on video and audience growth, providing practical strategies for building YouTube channels and using both Shorts and long-form video to reach new audiences.
Another area is direct reader relationships, with participants expected to strengthen their open-web presence and newsletters in order to develop first-party audiences that newsrooms can directly engage.
The fourth area is sustainable revenue, with sessions covering monetisation strategies, product differentiation and audience growth models.
Marianne Erasmus, News Partnerships Lead, Middle East and Africa at Google, said independent news creators and digital-native newsrooms were increasingly shaping how Africans, particularly Nigerians, find and understand news.
“Independent news creators and digital-native newsrooms are shaping how Africans, and Nigerians in particular, find and understand the news,” Erasmus said.
She said the Growth Lab would equip emerging newsrooms with practical AI skills, video and audience strategies, direct relationships with readers and approaches to sustainable revenue.
Erasmus added that strengthening the capabilities and financial independence of emerging news voices would contribute to a more resilient, diverse and sustainable news ecosystem.
Wale Lawal, Founder and Editor-in-Chief of The Republic, said the programme was providing practical ways for the publication to combine audience insights, product thinking and responsible AI use.
“Google’s Emerging News Voices Growth Lab is giving us practical ways to combine audience insight, product thinking and the responsible use of AI as we build a more sustainable future for The Republic’s journalism,” Lawal said.
Similarly, Nasir Achile Ahmed, Editor-in-Chief and Co-founder of MoreBranches, said the programme had provided practical resources, new tools and opportunities to connect with experts and fellow journalists.
Ahmed said the initiative had also provided information that validated some of the newsroom’s previous observations while equipping its team with knowledge on how to use new tools effectively.
He said the engagement with experts and fellow journalists had created a supportive environment for strengthening storytelling.
The Growth Lab emerged from the Global News Gap Project, a continent-wide mapping initiative conducted with Project Oasis and Code for Africa to identify independent African news creators and areas where emerging newsrooms require additional support.
The programme is part of Google’s broader support for the Nigerian media industry.
Since 2018, Google has supported newsroom transformation projects through the Google News Initiative and provided publishers with opportunities to strengthen their advertising revenue capabilities through the Ad Manager Academy.
Google said that since 2024, it had trained more than 1,500 Nigerian journalists and editors in areas including online safety, advanced Search, digital verification and audience analytics.
It also supports media skills development through its collaboration with the MTN Media Innovation Programme, where fellows receive practical training on AI as a productivity partner and newsroom technologies, including News Consumer Insights and Gemini.
The latest initiative reflects the growing importance of digital-native journalism as news consumption continues to shift towards social media, video platforms and other online channels.
Through the Growth Lab, GNI is seeking to help emerging news creators build stronger digital operations, expand their audiences and develop sustainable business models while responsibly adopting emerging technologies.
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