Telecom
Why Nigerians Still Pay N6.98 Even When Bank USSD Fails – ALTON Finally Explains
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.
Nigerian Communications Commission (NCC) has directed telecommunications operators to make dedicated budgetary provisions for cybersecurity as part of efforts to strengthen the resilience of Nigeria’s communications infrastructure against the growing wave of cyber threats.
The directive forms part of the Commission’s Cyber Resilience Framework for the Nigerian Communications Sector (CRF-NCS), which introduces new governance, risk management and operational requirements aimed at safeguarding the country’s critical telecommunications infrastructure from increasingly sophisticated cyberattacks.
Under the framework, all licensed telecom operators are expected to establish formal cybersecurity governance structures, dedicate adequate financial resources to cyber resilience programmes, and integrate cybersecurity into their enterprise-wide risk management processes.
The Commission said operators must ensure cybersecurity investments are no longer treated as optional operational expenses but as strategic business priorities necessary to protect network infrastructure, customer information and the country’s digital economy.
According to the NCC, licensees are expected to allocate sufficient budgets to support cyber risk assessments, security technologies, staff training, incident response capabilities, continuous monitoring and compliance with regulatory requirements.
The framework also requires operators to designate senior executives responsible for cybersecurity oversight.
At the same time, boards of directors are expected to provide strategic direction and ensure adequate funding for cyber resilience initiatives.
Speaking on the need for a stronger cybersecurity regime during the unveiling of the framework, Abraham Oshadami, executive commissioner, Technical Services, NCC, said, “Given the increasing digitalisation of services, the rapid growth of data exchange, and the sophisticated nature of modern cyber threats, the need for a robust, adaptive and inclusive cybersecurity framework has become more urgent.”
He added, “Both state and non-state actors are targeting essential sectors—including ours—through coordinated cyber and physical attacks. These attacks frequently target control systems and data integrity, underscoring the critical risks posed to operational technology (OT), especially in our sector.”
“As cyber threats evolve, they endanger not only system performance but also human safety, amplifying the severity and consequences of disruptions to vital communications infrastructure. Cybersecurity now encompasses human safety and must address the real risk to people’s lives when a system is attacked or compromised.”
The Commission further stated that operators are required to develop comprehensive cybersecurity implementation plans, conduct periodic risk assessments, establish business continuity and disaster recovery procedures, and regularly test their cyber defence capabilities.
In addition, the framework makes cyber incident reporting compulsory. Licensees must inform the NCC’s CSIRT of any major cybersecurity breach within four hours of discovery, and provide a thorough post-incident analysis after mitigation is complete.
Digital solution provider, Globacom has recorded the highest Internet subscriber growth among Nigeria’s major telecom companies for the month of May.
Data from the Nigerian Communications Commission, NCC, Nigeria’s total Internet users increased to 157 million in May, up from 154.3 million in April. That is a growth of 2.67 million users in one month.
Globacom led the market by adding about 1.2 million new Internet subscribers. This means Glo was responsible for almost half of all new Internet users in May.
The company’s subscriber base grew from 15.5 million in April to 16.8 million in May. Airtel came second with 1.07 million new users, moving from 54.8 million to 55.8 million. MTN added 382,894 users to reach 83.5 million.
T2 Mobile, formerly 9mobile, recorded no growth for the second month in a row. Its subscriber base remained at 802,534. This is despite its roaming agreement with MTN, which was approved almost a year ago to help T2 customers use MTN’s network in areas with poor coverage.
Industry experts say Glo’s strong growth is due to its ongoing network upgrade. Since last year, the company has been building new base stations, expanding its fibre network, and adding thousands of new 4G sites across cities and rural areas.
The upgrades have improved voice and data quality for customers, while Globacom remain committed to providing better network experience and affordable Internet services to more Nigerians.
MTN Nigeria’s half-year 2026 performance reflects more than revenue growth, highlighting the wider economic activity generated through tax payments, infrastructure investment and shareholder returns.
Kadri, MTN CFO
Beyond its financial results, the telecommunications operator said it continues to channel substantial resources into expanding network infrastructure, meeting statutory obligations and delivering value across its stakeholder ecosystem.
The company disclosed that it paid more than ₦600 billion in taxes, customs duties, regulatory levies and other statutory obligations over the past year.
It also invested over ₦1.6 trillion in capital expenditure since January 2025 to expand network capacity and improve service quality, while declaring an interim dividend of ₦26 per share for shareholders.
Speaking on Arise News’ Global Business Report, MTN Nigeria’s Chief Financial Officer, Modupe Kadri, explained that the company’s earnings are shared across several stakeholders before returns reach investors. “For every one naira of revenue, about 24 kobo becomes profit.
“The government receives over ₦600 billion through taxes and levies, operating costs account for a significant portion of our revenue, and every participant within the ecosystem benefits from the value we create,” he said.
According to the Nigerian Communications Commission (NCC), telecommunications remains one of the largest contributors to Nigeria’s Gross Domestic Product, supporting digital financial services, education, healthcare, commerce and public services. Continued investment by operators has also been identified as critical to expanding broadband access and improving digital inclusion across the country.
Kadri noted that shareholder returns remain an important part of MTN’s capital allocation strategy, but stressed that they represent only one aspect of the company’s broader economic contribution.
“Even when we declare dividends, the government still receives withholding tax, while we continue investing heavily in our network because sustaining quality service requires ongoing capital commitment,” he said.
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