Telecommunications operators in Nigeria have clarified that they are not responsible for the N6.98 fee charged on failed USSD banking transactions. The Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), Gbenga Adebayo, stated that telcos merely provide the network enabling customers to connect to their banks.
Telcos Deny Responsibility for Failed USSD Charges
Adebayo spoke during a radio program hosted by Jimi Disu, addressing growing complaints about the N6.98 deduction even when transactions fail. He explained that once a customer dials a USSD code, the telecom network is utilized, and that service must be paid for regardless of the banking transaction's outcome.
To illustrate, Adebayo compared telecom services to a taxi ride. 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 arrive, you still have to pay the taxi man."
According to reports, Adebayo emphasized that every USSD attempt consumes network resources, meaning telecom infrastructure is engaged each time a code is dialed, irrespective of the result. Meanwhile, regulators such as the Nigerian Communications Commission (NCC) and the Central Bank of Nigeria (CBN) are reviewing data to determine accountability for failed transactions.
Adebayo Addresses Data Expiry and Toll-Free Lines
Adebayo also responded to complaints about data expiration, stating it is not exploitation. He explained that data plans are sold with a validity period and are not intended to last indefinitely. However, users can roll over unused data if they renew their subscriptions before expiry.
On toll-free lines, he clarified they are not entirely free. Companies or organizations pay for the service so customers can call without charges. Due to economic challenges, fewer businesses are willing to fund such services.
While acknowledging customer frustration, Adebayo urged Nigerians to better understand telecom system operations. He noted that penalties alone will not resolve sector issues, citing problems like poor electricity supply and vandalism of telecom infrastructure. He called on stakeholders and the public to help protect telecom facilities, stressing that reliable service depends on shared responsibility.
As complaints persist, many Nigerians await clear regulatory guidance on who should bear the cost of failed USSD transactions.
Banks Clear N300bn USSD Debt Owed to Telcos
In related news, commercial banks and telecom operators in Nigeria resolved a four-year dispute over unpaid USSD charges. Adebayo announced that a N300 billion debt was fully settled following regulatory intervention and coordinated engagement led by the NCC.
The industry has transitioned to a new model where USSD transaction fees are deducted directly from customers' mobile airtime.
