Association of Licensed Telecommunications Operators of Nigeria (ALTON), has defended the N6.98 Unstructured Supplementary Service Data (USSD), fee charged on banking transactions, insisting that the cost reflects the service provided by network operators, regardless of whether the transaction is completed.

Gbenga Adebayo, chairman, ALTON, made the clarification during a radio programme, where he addressed growing consumer complaints over what many Nigerians have described as “unfair billing” and the alleged “scam” of data expiration.

Adebayo likened the role of telecommunications companies in USSD transactions to that of a transport service provider facilitating access to banks’ digital platforms.

He said: “The phone company is like a taxi taking you to the bank’s digital office. Even if the bank’s system is down when you get there, you still have to pay the taxi man.

“Every USSD request initiated by a subscriber utilises network resources, irrespective of the outcome of the transaction on the bank’s end.

“When customers make repeated attempts due to failed transactions, telecom operators still provide connectivity for each attempt, thereby incurring operational costs,” he explained.

On the lingering dispute between telecom operators and banks over failed USSD transactions, Adebayo disclosed, “that regulators, including the Nigerian Communications Commission (NCC), and the Central Bank of Nigeria (CBN), are currently reviewing data to determine responsibility for transaction failures.

“Each time you dial a USSD code, the telco provides the access. If the bank does not complete the transaction, it does not negate the fact that the network has already been used,” he added.

The ALTON Chairman also addressed widespread dissatisfaction over data expiration, clarifying that data bundles are sold within defined validity periods and are not designed for indefinite use.

“You can’t carry it in perpetuity, but you have the benefit of extending it without losing unused portions by just resubscribing,” he said.

He explained that subscribers can retain unused data through rollover options, provided they renew their subscriptions before the expiration of the current bundle.

Adebayo further shed light on the concept of toll-free lines, noting that such services are not entirely free but are funded by the receiving organisation.

“There is nothing like free service. These are reverse charge lines where the business or government pays for the calls,” he explained, adding that economic realities have made many organisations reluctant to sustain such costs.

He noted that this has contributed to the limited availability of toll-free services in Nigeria.

While acknowledging consumer frustrations, Adebayo stressed the need for greater public understanding of how telecom services operate, particularly the cost implications of maintaining network infrastructure.

European Union (EU) has warned that Meta may be failing to effectively prevent children under the age of 13 from accessing its social media platforms, including Facebook and Instagram.

Meta

The warning followed an investigation conducted under the Digital Services Act (DSA), which found that the company’s age-verification safeguards may be inadequate.

EU regulators said preliminary findings showed that children could easily bypass age restrictions by providing false birth dates during registration.

They also noted that tools for reporting underage users were difficult to locate and use, raising concerns about children’s exposure to inappropriate content and online risks.

EU Executive Vice-President for Tech Sovereignty, Security and Democracy, Henna Virkkunen, said platform rules should go beyond written policies.

“Terms and conditions should not be mere written statements, but rather the basis for concrete action to protect users, including children,” Virkkunen said.

Under Meta’s policies, users must be at least 13 years old to create accounts on its platforms.

However, EU officials said the company’s enforcement mechanisms appeared insufficient and did not adequately address the risks posed to younger users.

If the findings are upheld, Meta could face penalties of up to six per cent of its global annual turnover under the Digital Services Act.

The company, however, rejected the allegations, saying it already operates systems designed to detect and remove underage accounts.

Meta added that it would continue to cooperate with EU regulators on the matter.

The investigation, launched in May 2024, forms part of the EU’s wider push to strengthen oversight of major technology firms and improve online safety for children.

Regulators are also reviewing broader platform design concerns, including features they describe as potentially addictive and harmful to users’ wellbeing.

The EU is considering additional measures, including the possibility of introducing a bloc-wide minimum age restriction for social media use, amid growing pressure for tighter child safety regulations online.

The recent broadcast on Nigeria Radio FM 99.3, hosted by Jimi Disu, saw listeners ask Engr. Gbenga Adebayo, Chairman, Association of Licensed Telecommunications Operators of Nigeria (ALTON) on Saturday, April 25, over what many described as ‘unfair’ billing and the ‘scam’ of data expiration.

ALTON Chairman Engr. Gbenga Adebayo

Addressing the heated matter surrounding the NGN6.98 USSD fee for banking transactions, Adebayo offered a blunt analogy to justify the cost.

He likened the telecommunications provider to a ‘taxi’ that carries a passenger to the bank’s digital front door. Defending the charge, he argued, “The phone company is like a ‘taxi’ taking you to the bank’s digital office. Even if the bank’s system is down when you get there, you still have to pay the taxi man.”

The ALTON Chairman was equally firm on the matter of data expiration, a major point of friction for Nigerian consumers. He clarified that data plans are sold within specific subscription windows, such as 7 or 30 days, and are not designed to be held in perpetuity.

Addressing this directly, he told listeners, “You can’t carry it in perpetuity… but you have the benefit of extending it without losing unused portions by just resubscribing.” He explained that subscribers can indeed keep their unused data through ‘rollover’ benefits, provided they resubscribe to a new plan before their current bundle officially lapses.

The dialogue moved to the issue of toll-free lines, with Adebayo explaining the technical reality of toll free numbers.

He noted that ‘nothing is free,’ rather, these are “reverse charge lines” where the business or the government absorbs the cost so the caller does not have to pay.

In Nigeria’s current economic climate, fewer businesses are willing to pay for these calls, leading to a shortage of truly free lines for consumers.

This financial burden is part of the broader “opportunity cost” analysis that consumers must understand when comparing Nigerian services to international standards.

Data provided during the broadcast also shed light on the dispute between telcos and the banking sector. Adebayo revealed that the NCC and the CBN are currently reviewing data to determine which party is responsible for failed transactions.

He noted that when a user attempts a USSD transaction multiple times, the telco provides the connection for every single attempt. If the bank’s system fails to complete the transaction, the telco has still expended resources to provide the link, which is why the N6.98 charge is applied for the access provided.

In his concluding remarks, Adebayo urged for more public enlightenment to bridge the gap between consumer frustration and technical realities.

He stressed that while the NCC continues to impose fines and penalties on operators for quality lapses, these fines do not actually solve the underlying problems of power failure and vandalism.

For service to truly improve, there must be a collective effort to protect the network from physical harm and a better understanding of the business models that keep Nigeria connected.