National Association of Telecommunications Subscribers (NATCOMS) has said it would file a lawsuit against the federal government’s decision to allow telecom operators to increase tariffs by 50 per cent.

Deolu Ogunbanjo, president, NATCOMS

Deolu Ogunbanjo, president, NATCOMS, in an interview in Lagos, said the Nigerian Communications Commission did not carry subscribers along.

Ogunbanjo said that NATCOMS understood the dilemma faced by the telecommunications industry and had suggested a five per cent to ten per cent marginal increase in tariff.

He said that the approval by the federal government for telecom operators to hike tariffs but capped at 50 per cent maximal increment was unacceptable.

According to Ogunbanjo, earlier, economic experts had x-rayed the telecoms sector and said that it was in intensive care, meaning that it needed to be attended to.

“The industry operators can opt for an initial public offer for Nigerians to buy shares in their companies as a way of raising funds. However, a situation where a whole 50 per cent is granted for a tariff hike is not cheap. It is a no from us subscribers.

“I mean, for what we are already going through, no for us, we will challenge this in court,’’ Ogunbanjo stated.

On Monday, the NCC, the industry’s regulatory body, released a statement saying it had acceded to the requests of operators to hike tariffs.

This was announced in a statement.

The NCC said it had approved the 50 per cent tariff adjustments in response to prevailing operational costs. It said this was less than the 100 per cent demanded by some telecom operators.

It said its decision was pursuant to its power under Section 108 of the Nigerian Communications Act, 2003, to regulate and approve tariff rates and charges by telecommunications operators.

The NCC added that, while recognising the concerns of the public, the decision was made after extensive consultations with key stakeholders across the public and private sectors.

“The NCC has prioritised striking a balance between protecting telecoms consumers and ensuring the sustainability of the industry, including the thousands of indigenous vendors and suppliers who form a critical part of the telecommunications ecosystem.

“The NCC recognises the financial pressures faced by Nigerian households and businesses and remains deeply empathetic to the impact of tariff adjustments. To this end, the commission has mandated that operators implement these adjustments transparently and in a manner that is fair to consumers,” the NCC explained.

It added that these adjustments would support the ability of operators to continue investing in infrastructure and innovation, ultimately benefiting consumers through improved services and connectivity.

The NCC also mentioned that consumers would benefit from better network quality, enhanced customer service, and greater coverage within the country.

Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) have provided a new framework to resolve the protected Unstructured Supplementary Service Data (USSD) debt issue between Deposit Money Banks (DMBs) and Mobile Network Operators (MNOs).

USSD, sometimes referred to as “quick codes” is provided by MNO and are used for banking services.

MNOs and banks have been at loggerheads over debts.

USSD debt issue emerged from allegations that some banks were deducting the USSD fees from customers but failing to remit the funds to telecom operators.

Instead, the banks reportedly used these funds to address other financial obligations.

Despite significant efforts, the dispute has remained unresolved.

In their second intervention, the CBN and NCC issued a joint circular signed by Oladimeji Yisa Taiwo, acting director, Payments System Management Department, and Chizua White, head of Legal & Regulatory Services of CBN and NCC respectively.

In the circular, the regulators mandated the banks to settle 85 percent of all outstanding invoices issued after the implementation of Application Programming Interfaces (APIs) by December 31, 2024.

Furthermore, all future invoices must also be settled at 85 percent within one month of issuance.

Banks are required to pay 60 percent of invoices predating the API implementation as full and final settlement.

Payment plans, whether lump sum or installments, must be finalized between DMBs and MNOs by January 2, 2025.

Where installment payments are proposed, such plans must consist of equal monthly payments, with all payments completed by July 2, 2025.

Transition to End-User Billing (EUB)

Compliance with the aforementioned directives is a prerequisite for transitioning to an End-User Billing (EUB) system.

The NCC will activate the necessary regulatory processes to enable this transition and will provide public guidance on the matter.

Part of the guidance incudes the following.

To ensure fairness in billing, MNOs must adopt a rule that any USSD session lasting less than 10 seconds will not be billable.

Migration for prepaid billing DMBs

Banks currently operating under prepaid billing may transition to EUB after fulfilling all regulatory requirements.

Discontinuation of Litigation Both DMBs and MNOs have been instructed to discontinue any ongoing legal proceedings related to the USSD debt dispute,” it read in part.

The circular underscored that non-compliance with these directives would attract regulatory sanctions from both the CBN and NCC.

The USSD debt issue emerged from allegations that some banks were deducting the N6.98 USSD fees from customers but failing to remit the funds to telecom operators.

Instead, the banks reportedly used these funds to address other financial obligations.

As a result, telecom companies, under the directive of the NCC, threatened to disconnect nine banks from USSD services by January 27, 2025, if they failed to settle outstanding debts.

The affected banks include Fidelity Bank, First City Monument Bank (FCMB), Jaiz Bank, Polaris Bank, Sterling Bank, United Bank for Africa (UBA), Unity Bank, Wema Bank, and Zenith Bank. Collectively, their debts are estimated to exceed N160 billion.

The NCC issued a notice emphasising its commitment to consumer protection and warned customers of the potential loss of USSD services with these banks if the debts remain unpaid. “As part of its commitment to consumer protection, the Commission wants to inform consumers that they may lose access to the USSD services of the affected banks from January 27, 2025,” the NCC stated.

Previously, telecom operators threatened to suspend the USSD services of 18 banks due to unpaid bills totaling over N200 billion.

However, the recent directives signal a renewed effort to resolve the impasse and ensure that consumers continue to enjoy seamless USSD services.

The CBN and NCC aim to resolve the USSD debt issue through the outlined measures, ensuring a balance between the interests of telecom operators, banks, and consumers. A key element of this resolution is the shift to an End-User Billing system, which will streamline the payment process and minimize disputes.

In addition to the financial directives, the circular encouraged collaboration between banks and telecom operators to implement these measures effectively.

It also directed both parties to ensure prompt and transparent communication to avoid further misunderstandings.

For customers, the resolution of this issue is critical to maintaining uninterrupted access to USSD services, which are essential for mobile banking transactions.

The adoption of the “10-Second Rule” is expected to reduce disputes over unfair billing and enhance consumer trust.

As part of the regulatory process, the NCC and CBN will provide public guidance on the transition to the new billing system.

This step is expected to foster a smoother shift to End-User Billing while ensuring that consumers are adequately informed.

The ongoing efforts by the CBN and NCC to address the USSD debt dispute reflect a commitment to safeguarding consumer interests and maintaining stability in Nigeria’s financial and telecommunications sectors.

By enforcing these directives, the regulators aim to resolve the debt crisis, ensure fair practices, and support the continued growth of digital financial services in the country.

While challenges remain, the outlined resolutions provide a clear path forward, emphasising accountability, transparency, and collaboration among all stakeholders.

The next steps will determine the success of this initiative and its impact on the broader financial ecosystem.

Nigerian Communications Commission (NCC) has announced that it will approve tariff adjustment requests by network operators, in response to current market conditions.

The adjustments, capped at a maximum of 50% of current tariffs, are lower than the over 100% requested by some operators.

These changes will remain within the tariff bands stipulated in the 2013 NCC Cost Study and will be reviewed on a case-by-case basis, adhering to the NCC Guidance on Tariff Simplification, 2024.

The adjustments aim to address the gap between operational costs and current tariffs, ensuring service delivery is not compromised.

They will support operators in investing in infrastructure and innovation, benefiting consumers through improved services and connectivity.

The decision was made after extensive consultations with stakeholders, balancing consumer protection and industry sustainability.

The NCC has mandated transparent implementation and public education on the new rates, with a focus on measurable service improvements.

The NCC remains dedicated to fostering a resilient, innovative, and inclusive telecommunications sector, supporting indigenous vendors and suppliers, and promoting Nigeria’s digital economy.

The Commission will continue to engage with stakeholders to create a telecommunications environment that works for everyone.