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FG Mum as Telcos Threaten to Disconnect Banks from USSD Services over N250Bn Debt

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Federal government has failed to intervene in the unstructured supplementary service data (USSD) debt crisis between the telecom operators and the financial banks in the country.

FG Mum as Telcos Threaten to Disconnect Banks from USSD Services over N250Bn Debt

Karl Toriola, chief executive officer (CEO), MTN Nigeria, said the banks might be disconnected from the USSD platform due to debt arising from the use of the quick codes by their customers, which has now reached N250 billion.

USSD, also known as quick or feature codes, is a global system for mobile communications (GSM) protocol that is used to send text messages and initiate financial transactions such as cash transfers, balance inquiries, payments for services and others.

As at Tuesday, Dr. Bosun Tijani, minister of Communications and Digital Economy, and the Nigerian Communications Commission (NCC) were taciturn.

But Toriola said mobile network operators (MNOs) might, subject to regulatory approval, suspend supporting the use of the service on the network for banking operations, as the debt had continued to pile up and was becoming unsustainable to the operators.

According to Toriola, the increasing debt is unsustainable for telecommunications companies (telcos).

Also speaking, Engr. Gbenga Adebayo, chairman, Association of Licensed Telecom Operators of Nigeria (ALTON), described the services provided by telecommunication firms for banks’ customers to use USSD as commercial and not for social purpose

“The debt has been long overdue and the banks who owe the telcos have more or less turned us to beggars on getting them to pay our debt, so there is no choice. If the regulators do not resolve the matter, what has been foreseen will happen, the services will be withdrawn. We are leaving to the CBN to resolve, if it is not able to resolve this matter, there will be no choice than to withdraw USSD from the banks,” he added.

Deolu Ogunbanjo, a telecom right activist, said Nigerian telecoms’ subscribers should sue the banks if they couldn’t use the USSD for their banking transactions by May ending, according to Daily Trust.

Ogunbanjo, who is the president of the National Association of Telecom Subscribers of Nigeria (NATCOMS), said the telcos wouldn’t be doing anything wrong if they eventually disconnect the banks.

Recall that in 2019, telcos sought to charge banks N4.50 for every 20 seconds of USSD usage, but banks opposed this, claiming it would drastically hike transaction costs.

In response to mounting pressures, the operators previously agreed to a new charge of N6.98 per transaction in 2021.

Despite this, the debt has escalated significantly, with Toriola urging the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) to mediate for a resolution.

He emphasized that if the situation remains unresolved, telcos may have no choice but to seek regulatory approval to cut off banks from USSD services entirely.

Toriola lamented that the telecom sector is in critical condition, likening it to being in the “intensive care unit.”

He warned of dire consequences if the government does not allow necessary tariff adjustments, stating, “If the tariff doesn’t go up, we’ll shut down.”

 


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QNET Named ‘Direct Selling Company of the Year’ at AfriTECH 4.0 Awards

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QNET, a leading global lifestyle and wellness direct selling company, has been honored with the prestigious “Direct Selling Company of the Year” award at the recent AfriTECH 4.0 Conference and Awards.

This recognition underscores QNET’s significant contributions to financial inclusion and e-commerce in Africa.

The award was presented to QNET by Mr. Chike Onwuegbuchi, Co-Convener of AfriTech & ATAEx Awards. Onwuegbuchi commended QNET for its unwavering commitment to empowering individuals and driving economic growth across the continent.

He highlighted the company’s innovative approach to direct selling, coupled with its focus on financial literacy and digital innovation.

Biram Fall, Regional Manager for QNET Sub-Saharan Africa, expressed his gratitude for the recognition.

He emphasized QNET’s dedication to innovation, entrepreneurship, and digital transformation in Africa.

Fall highlighted the company’s impact on the Nigerian economy, particularly through its advanced technology and robust e-commerce platform.

“QNET’s participation in this event further solidified its position as a key player in the region’s digital transformation journey.

“We are committed to staying in Nigeria, our biggest market in Sub-Saharan Africa, and contributing to the region’s development,” Fall stated.

During his keynote speech, Fall underscored QNET’s commitment to empowering individuals through knowledge and skill development.

He highlighted the FinGreen financial literacy program, which has already trained over 1,350 young people in Nigeria to make informed financial decisions.

Fall also emphasized the potential of direct selling to drive economic growth in Africa. “Our e-commerce-driven direct-selling model provides opportunities for income generation across more than 100 countries, helping individuals pursue their goals while contributing to community growth,” he explained.

Addressing the challenges of limited banking infrastructure and cash dependency in Africa, Fall stressed the importance of financial inclusion for e-commerce growth.

He called for collaboration to accelerate financial inclusion and e-commerce growth in Africa, fostering a financially inclusive future for the continent.


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Martin Ekpeke Honored with Digital Reporting Excellence Award @ATAEx

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Martin Ekpeke, Managing Editor of ITPulse, a leading Nigerian online Information and Communications Technology (ICT) news platform, was awarded the prestigious Digital Reporting Excellence Award at the Africa Tech Alliance Excellence (ATAEx) Awards.

The award, presented by Tech Castle Foundation, recognizes Ekpeke’s exceptional coverage of cyber threats, digital privacy, and the evolving online security landscape.

“We are thrilled to honor Martin Ekpeke with the Digital Reporting Excellence Award.

“His insightful reporting has been instrumental in raising awareness about critical digital issues and empowering individuals and organizations to stay informed and protected,” said Chike Onwuegbuchi from Tech Castle Foundation.

Ekpeke expressed his gratitude for the recognition, stating, “I am deeply honored to receive this award.

“It is a testament to the hard work and dedication of the entire ITPulse team.

“We are committed to delivering high-quality, informative content that empowers our readers to navigate the complex digital world.”

The Africa Tech Alliance Excellence (ATAEx) Awards celebrate individuals, businesses, and institutions driving digital transformation in Africa.

This year’s event brought together tech enthusiasts, regulators, and other key stakeholders in the Nigerian ICT ecosystem.


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NCC Calls on Judiciary to Champion Nigeria’s Digital Transformation

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Nigerian Communications Commission (NCC) has emphasized the judiciary’s crucial role in Nigeria’s digital transformation. During the Annual Workshop for Judges on Legal Issues in Telecommunications, Executive Vice Chairman Aminu Maida highlighted the judiciary’s reliance on digital tools to enhance justice delivery.

He stressed the need for special protections for telecommunication infrastructure, which faces disruptions from vandalism, theft, and restricted access.

Maida called for judicial support to implement the Presidential Order designating telecommunications infrastructure as Critical National Information Infrastructure.

This order prohibits unauthorized actions against such infrastructure without a lawful court order.

The judiciary’s role in protecting fundamental rights, enforcing digital contracts, and developing digital jurisprudence is vital for Nigeria’s digital transformation.

Chief Justice of Nigeria, Justice Kudirat Kekere-Ekun, commended the NCC’s efforts to protect consumers from unfair practices and emphasized the judiciary’s commitment to the telecommunications sector.

She highlighted concerns such as cybersecurity risks, consumer data protection, and the need for improved dispute resolution frameworks within the digital economy.

The workshop aims to equip judicial officers with the technical expertise required to address emerging legal challenges in telecommunications.

Nigeria’s digital economy has significant growth potential, with projected revenues of $18.30 billion by 2026, expected to create employment opportunities, reduce poverty, and promote innovation.

The NCC is working with key stakeholders to ensure the seamless implementation of the Presidential Order and to keep Nigeria competitive in the global digital economy.


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