Telecom Operators Speak Out as Nigerians Protest N6.98 USSD Deductions on Failed Transactions
- Telecom operators in Nigeria have explained that they are not responsible for charges on failed USSD banking transactions
- They argue that customers are billed because each USSD attempt uses telecom infrastructure, even if the bank transaction fails
- Regulators are reviewing the issue as Nigerians continue to complain about the charges and seek clarity on who should bear the cost
Legit.ng journalist Victor Enengedi has over a decade's experience covering energy, MSMEs, technology, banking and the economy.
Telecommunications operators in Nigeria have said they should not be blamed for charges on failed USSD banking transactions.
The Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), Gbenga Adebayo, explained that telcos only provide the network that allows customers to connect to their banks.
Source: UGC
Telcos deny responsibility for failed USSD charges
Adebayo spoke during a radio programme hosted by Jimi Disu, where he responded to growing complaints about the N6.98 fee charged even when transactions do not go through.
According to him, once a customer dials a USSD code, the telecom network is used, and that service must be paid for, whether the banking transaction succeeds or fails.
To explain this, 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.”
The Sun reported that Adebayo stated that every USSD attempt uses network resources, meaning telecom infrastructure is engaged each time a code is dialled, regardless of the result.
Meanwhile, regulators such as the Nigerian Communications Commission (NCC) and the Central Bank of Nigeria (CBN) are reviewing data to determine who should take responsibility for failed transactions.
Adebayo addresses data expiry, toll-free lines challenges
Adebayo also addressed complaints about data expiration, saying it is not exploitation. He explained that data plans are sold with a validity period and are not meant to last forever.
However, users can roll over unused data if they renew their subscriptions before it expires.
On toll-free lines, he clarified that they are not truly free. Instead, companies or organisations pay for the service so that customers can call without being charged. He noted that due to economic challenges, fewer businesses are willing to continue funding such services.
While admitting that customers are frustrated, Adebayo urged Nigerians to better understand how the telecom system works. He said penalties alone will not fix the sector’s problems, pointing to issues like poor electricity supply and vandalism of telecom infrastructure.
He called on both stakeholders and the public to help protect telecom facilities, stressing that reliable service depends on shared responsibility.
As complaints continue to grow, many Nigerians are waiting for clear guidance from regulators on who should bear the cost of failed USSD transactions.
Source: Getty Images
Banks clear N300bn USSD debt owed Telcos
Meanwhile, Legit.ng earlier reported that commercial banks and telecom operators in Nigeria finally resolved their 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 now transitioned to a new model, under which USSD transaction fees are deducted directly from customers’ mobile airtime.
Source: Legit.ng
