The Association of Licensed Telecommunications Operators of Nigeria (ALTON) has defended the controversial N6.98 USSD charge on banking transactions and responded to growing complaints over expired mobile data, insisting that telecom operators still bear costs even when digital banking services fail.
Background of the Dispute
The clarification comes amid rising frustration from subscribers of major telecom providers, including MTN Nigeria, Airtel Nigeria, Glo, and 9mobile, over charges linked to USSD banking services and the expiration of unused data bundles. Many customers have questioned why they are billed for failed banking transactions and why unused data often disappears after subscription deadlines.
Why Telcos Say USSD Charges Still Apply
Speaking during a live programme on Nigeria Info FM 99.3 hosted by Jimi Disu, ALTON Chairman Gbenga Adebayo explained that telecom companies only provide the connection infrastructure that links customers to their banks’ digital platforms, according to a report by The Punch. He argued that telcos should still be compensated for that service, even if the banking platform itself fails.
Adebayo compared the process to hiring a taxi to visit a bank: “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.” He noted that every USSD request consumes telecom network resources, including failed attempts caused by bank system downtime. This means that if a customer retries a transaction multiple times because the bank’s platform is unavailable, the telecom operator still provides the network connection each time.
NCC and CBN Reviewing Failed Transactions
Adebayo disclosed that the Nigerian Communications Commission (NCC) and the Central Bank of Nigeria (CBN) are currently reviewing operational records to determine responsibility for failed USSD transactions between banks and telecom providers. The review is expected to help clarify whether failed transaction charges should remain the responsibility of telecom operators, banks, or both. The issue has remained a major source of disagreement between financial institutions and mobile subscribers across Nigeria.
Why Does Unused Data Expire?
On complaints about disappearing mobile data, Adebayo dismissed claims that telecom companies deliberately shortchange users. He explained that mobile data subscriptions are structured around fixed validity periods such as daily, weekly, or 30-day plans, and are not designed to last indefinitely. “You can’t carry it in perpetuity,” he said. He added that subscribers can preserve unused data through rollover options, provided they renew their subscriptions before the expiration date. This means customers who fail to renew on time may lose remaining data based on the terms of their chosen plan.
Toll-Free Lines and Network Challenges
The ALTON chairman also addressed complaints about the decline of toll-free customer service lines. He explained that toll-free numbers are not truly free, as businesses and institutions pay the charges through reverse billing arrangements. According to him, rising economic pressure has made many organisations less willing to absorb those costs. He further linked poor service quality in the telecom sector to vandalism, unstable electricity supply, and infrastructure damage. Adebayo stressed that improving network quality would require stronger protection of telecom assets and better public understanding of the costs involved in maintaining digital connectivity services across the country.
Why MTN, Airtel, Others Reassign Old Numbers
In a related development, ALTON clarified that unused phone numbers in Nigeria are returned to the federal government and later reassigned to new users after a specified period. Adebayo stated that telephone numbers are not owned by subscribers but are privileges allocated under regulatory oversight. When a number remains unused for a period defined by law, telecom operators are required to withdraw and return it to the regulator. This practice ensures efficient use of numbering resources.
