The Affiliation of Licensed Telecommunications Operators of Nigeria (ALTON) has stated that business banks have cleared the almost N300 billion debt owed telecom operators for Unstructured Supplementary Service Information (USSD) providers.
Chairman of the Affiliation, Engr. Gbenga Adebayo confirmed this on Thursday throughout an official go to to the Chairman of the Nigerian Communications Fee (NCC), Idris Olorunnimbe.
Adebayo stated the debt debacle that had lingered over 4 years was resolved by way of the intervention of the NCC below the management of its Govt Vice Chairman, Dr. Aminu Maida.
The clearing of the debt dropped at a shut years of accusations and counter-accusations between the banks and telecom operators.
What they’re saying
Whereas commending the management of the NCC for his or her current interventions together with the approval of fifty% tariff final 12 months, Adebayo stated the Fee has steered the ship of the telecom sector by way of considered one of its most delicate durations.
- “When Dr. Maida assumed workplace, he inherited vital trade challenges.
- “One of the crucial troublesome was the USSD debt disaster — a debt burden that grew over 4 years to just about N300 billion. It had turn into a systemic danger to our sector and the digital monetary ecosystem.
- “Via agency management, structured engagement, and decisive coordination, Dr. Maida and his workforce resolved this subject.
- “Right this moment, there isn’t a excellent USSD debt. The ecosystem has totally migrated to end-user billing. What was as soon as a looming disaster has been transformed right into a sustainable framework,” Adebayo acknowledged.
Tariff evaluate
The ALTON Chairman stated one other turning level for the telecom trade was the approval of tariff evaluate in 2025.
In line with him, for 13 years, the trade maintained static pricing regardless of rising inflation, forex volatility, ageing infrastructure, and escalating power prices.
- “Our tariffs fell considerably under value. Funding slowed. Networks turned strained. The sector was approaching a stage the place service rationing was turning into an actual risk,” he stated.
Adebayo stated the 50% tariff improve approval granted final 12 months saved the trade from collapse.
- “Right this moment, we’re seeing firms regularly return to profitability. Community stabilization has improved. Capital expenditure planning has resumed,” he stated.
He, nonetheless, famous that operators within the trade proceed to face challenges of day by day fibre cuts throughout the nation.
Adebayo additionally known as for intervention within the space of “a number of and extreme” taxes and levies being charged by states.
Responding, the NCC Chairman, Olurunnimbe, stated the NCC would do every part to make sure the sustainability of the telecom trade.
- “It is vitally vital that this sector, which has been working for over twenty years and continues to be a flagship sector for our nation, continues to work.
- “We’ll do what must be performed, and I do know that the channels of communication between us and NCC are very, very open. We won’t shut these channels.
- “In truth, we’ll widen them in order that we will hear you higher and react quicker. So, these points concern us as properly. And we’ll proceed to deepen the workings,” he stated.
Backstory
Final 12 months, the ALTON Chairman had introduced that the banks had cleared 95% of the debt owed to the telecom operators, noting that three banks have been but to pay.
Adebayo stated this paved the best way for the migration to the end-user billing, as cost of the debt was one of many circumstances for the migration.
The ALTON Chairman famous that the three remaining banks had negotiated for instalment cost.
Adebayo emphasised that the end-user billing means customer prices for USSD providers will now be deducted from cellular airtime as an alternative of a bank account.
What you must know
The telecom operators had, in June final 12 months, introduced the graduation of the end-user billing consistent with a brand new directive from the NCC to place an finish to the problem of USSD debt between banks and telcos.
Underneath the brand new mannequin, USSD session prices are deducted straight from customers’ airtime at a fee of N6.98 per 120 seconds, totally different from the earlier association the place banks deduct the cash and remit to telcos.
In line with ALTON, the migration to end-user billing follows the Dedication of USSD Pricing and Companies issued by the NCC, which was developed in collaboration with the Central Bank of Nigeria (CBN) and different key stakeholders.
ALTON stated the migration goals to create a extra sustainable, clear, and customer-friendly framework for delivering USSD providers, particularly in Nigeria’s rising digital monetary panorama.
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