Thursday, January 29, 2026
25.4 C
Lagos

Business

Repton Group Wins 2025 Dangote Cement Largest Distributor Award

…in Nigeria, Sub-Saharan Africa By Goke Ilesanmi L-R: Alhaji Aliko...

MTN: The Best Mobile Internet Performance in Nigeria 2025

  Analysis period: January 1, 2025 - December 31,...

NIPR Postpones Annual PRICE Awards to Jan 25, 2026

The Nigerian Institute of Public Relations (NIPR) has deferred...

Wines of Canada Debuts in the Nigerian Market

Carl DIB Merchandising Limited, a leading company in the...

ICT

Konga Partners Verve to Delight Customers with Free Shopping Vouchers

  Konga, Nigeria’s leading composite e-commerce platform has partnered with...

NCC Spotlights Renewable Energy on World Consumer Rights Day

  The Nigerian Communications Commission (NCC) has concluded arrangements to...

Governors, NCC Set for Broadband Awareness Forum Oct 20

All Nigeria State Governors are set to discuss how...

VerveLife 5.0 Gears Up for Nairobi, Lagos Events

Following a successful series of Verve Life 5.0 satellite...

Telecom Infrastructure Critical to Successful 2023 Elections – Danbatta

The Executive Vice Chairman of the Nigerian Communications Commission,...

Capital Market

NGX Group, Lagos State, HEI Expand Project BLOOM to Alimosho, Building on Measurable Social Impact

Nigerian Exchange Group Plc (NGX Group), in partnership with...

Stockbrokers, Securities Dealing Houses Congratulate NGX on N100tn Market Capitalisation

The Chartered Institute of Stockbrokers (CIS) and the Association...

Tinubu Applauds NGX N100tn Milestone, Charges Nigerians to Invest More Locally

President Bola Tinubu has praised corporate Nigeria, citizens, and...

FG, SEC, NGX Group Forge Unified Direction on Capital Gains Tax Reform

The Federal Government has inaugurated the National Tax Policy...

NGX Expands Market Offerings with Introduction of Commercial Paper Listings

Nigerian Exchange Limited (NGX) has introduced Commercial Paper (CP)...

Insurance

Heirs Insurance Hackathon Opens: Nine University Students to Win N9m Innovation Prize

Heirs Insurance Group (HIG), Nigeria’s fastest-growing insurance group, calls...

Royal Exchange CEO: Recapitalisation Will Reposition Insurance Sector, Support $1tn Economy Goal

Mrs. Idu Okeahialam, Group Managing Director/CEO, Royal Exchange Plc,...

Sovereign Trust Insurance Strengthens Partnership with TEXEM UK

L-R: Akinwumi Akinrinmade, ED, Technical Operations, Sovereign Trust Insurance...

SanlamAllianz Takes Financial Education to Lagos Markets

Insurance giants, SanlamAllianz has launched a financial education campaign...

Business

Repton Group Wins 2025 Dangote Cement Largest Distributor Award

…in Nigeria, Sub-Saharan Africa By Goke Ilesanmi L-R: Alhaji Aliko...

MTN: The Best Mobile Internet Performance in Nigeria 2025

  Analysis period: January 1, 2025 - December 31,...

NIPR Postpones Annual PRICE Awards to Jan 25, 2026

The Nigerian Institute of Public Relations (NIPR) has deferred...

Wines of Canada Debuts in the Nigerian Market

Carl DIB Merchandising Limited, a leading company in the...

ICT

Konga Partners Verve to Delight Customers with Free Shopping Vouchers

  Konga, Nigeria’s leading composite e-commerce platform has partnered with...

NCC Spotlights Renewable Energy on World Consumer Rights Day

  The Nigerian Communications Commission (NCC) has concluded arrangements to...

Governors, NCC Set for Broadband Awareness Forum Oct 20

All Nigeria State Governors are set to discuss how...

VerveLife 5.0 Gears Up for Nairobi, Lagos Events

Following a successful series of Verve Life 5.0 satellite...

Telecom Infrastructure Critical to Successful 2023 Elections – Danbatta

The Executive Vice Chairman of the Nigerian Communications Commission,...

Capital Market

NGX Group, Lagos State, HEI Expand Project BLOOM to Alimosho, Building on Measurable Social Impact

Nigerian Exchange Group Plc (NGX Group), in partnership with...

Stockbrokers, Securities Dealing Houses Congratulate NGX on N100tn Market Capitalisation

The Chartered Institute of Stockbrokers (CIS) and the Association...

Tinubu Applauds NGX N100tn Milestone, Charges Nigerians to Invest More Locally

President Bola Tinubu has praised corporate Nigeria, citizens, and...

FG, SEC, NGX Group Forge Unified Direction on Capital Gains Tax Reform

The Federal Government has inaugurated the National Tax Policy...

NGX Expands Market Offerings with Introduction of Commercial Paper Listings

Nigerian Exchange Limited (NGX) has introduced Commercial Paper (CP)...

Insurance

Heirs Insurance Hackathon Opens: Nine University Students to Win N9m Innovation Prize

Heirs Insurance Group (HIG), Nigeria’s fastest-growing insurance group, calls...

Royal Exchange CEO: Recapitalisation Will Reposition Insurance Sector, Support $1tn Economy Goal

Mrs. Idu Okeahialam, Group Managing Director/CEO, Royal Exchange Plc,...

Sovereign Trust Insurance Strengthens Partnership with TEXEM UK

L-R: Akinwumi Akinrinmade, ED, Technical Operations, Sovereign Trust Insurance...

SanlamAllianz Takes Financial Education to Lagos Markets

Insurance giants, SanlamAllianz has launched a financial education campaign...

USSD Charge: To Be or Not To Be?

By Elvis Eromosele

Nigerians, like customers everywhere in the world, are averse to price change and introduction. And like good customers, Nigerians are wont to kick and resist price hike under any guise.

This is why when people received text messages from a leading telecommunications services provider hinting of plans to commence charging N4 per 20 seconds on Unstructured Supplementary Service Data (USSD) platforms for money transfer transactions in Nigeria, the Internet literally broke as several people took to social media to express their grievance. It was hot. It was heated. It trended.

Unsurprising it got the attention of the new Minister of Communications and Digital Economy, Dr. Isa Ali Ibrahim Pantami who directed it be suspended until further determination. He has since declared the plan cancelled.

The Bankers’ Committee rather curiously, jumped on the bandwagon and slammed the charges. It more or less called it uncalled for.

The telcos didn’t keep quiet. They, through the Association of Licensed Telecom Operators of Nigeria (ALTON) released documents purportedly showing that the charges had the agreement of the bankers.

ALTON naturally came out strongly in defense of telecom companies in Nigeria over the purported charges for USSD use.

The umbrella body of all licensed telecom operators in Nigeria, speaking through Mr. Gbolahan Awonuga, its Administrative Secretary, noted that the N4.00 was determined by the Nigerian Communications Commission (NCC), the country’s telecom regulator.

According to Gbolahan, the determination of the USSD charges came about via a study conducted by the regulator in 2017 and by May 2019, the determination was issued. He revealed that the study on USSD was conducted by the NCC and industry working group (IWG).

ALTON’s stand indicated it wasn’t afraid of a fight. It questioned the statement credited to the Minister of Communications, Dr Isa Ali Ibrahim Pantami directing the telecom operators to discontinue the charges until he is fully and properly briefed. ALTON stated that the issue being discussed is not policy, but regulation.

“We are confusing regulation with policy. There was a determination on this USSD, even before the appointment of the Minister,” Gbolahan explained.

He argued that the Central Bank of Nigeria (CBN) is protective of the banks, but wondered why the telecom operators cannot be protected. According to him, “It is not about the good boy, but this is a commercial (matter) and the normal thing has been done.  Operators did not come up overnight to charge N4. It was deliberated upon and a decision taken.”

Interestingly, the NCC, Nigeria’s telecom regulator has been uncharacteristically silent on the matter. It would appear that the commission is caught between the proverbial rock and a hard. It can’t be seen to openly contradict the Ministry and Minister. This is expected in a patronage dependent clime like Nigeria, where no institution is truly independent.

For the Minister, well, Nigerians naturally already hailed him as a hero. He is fighting for the welfare of the common man. He is getting plenty of accolades. But it should not end there. He must now demonstrate that he understands the issues and can see the bigger picture.

The truth be told, Nigerians are already inundated with charges and penalties. Consider that there is a penalty for using POS in a cashless country. There is a penalty for making cash deposits. There is also penalty for cash withdrawals. In addition, there is penalty for ATM card, Credit card/Debit card use.

So, the real problem is that the USSD charge is perceived, rightly or wrongly, as another penalty.

And Nigerians are wary of penalties.

Furthermore, the popular view is that the financial sector is the major beneficiary of these charges. The telcos it seems now simply desire a piece of the pie.

No one can argue that they don’t deserve it. They have made humongous investment in the sector. But the point is that this piece of the pie should not come separately from the customers who are already made to pay so much at every turn.

The way forward is that between the financial services firms and the telcos they must explore how to split what is already been collected. The NCC and CBN can be the arbiter in that process.

The government, on its own must decide what it wants. If the goal is to boost financial inclusion then it must cease to support or promote policies that unfairly penalise people for using financial services, regardless of whether it is online or offline.

Where it wants to move forward in the drive for the establishment of the cashless economy, the Federal Inland Revenue Service (FIRS) must stop talking of taxing online transactions. This sort of talk is no doubt counterproductive.

To build a society positioned for the digital economy, the citizens must be carried along, government policies must encourage it and the access to digital services and tools must become ubiquitous.

In the meantime, NO TO USSD CHARGES.

Elvis Eromosele, a Corporate Communication Professional and Public Affairs Analyst lives in Lagos.

Hot this week

ITU Sets Path to Drive Digital Benefits for Citizens Worldwide

Member States of the International Telecommunication Union (ITU) agreed...

IMPI: Nigeria’s Economic Model under Tinubu to Deliver 5.5% GDP in 2026

One of Nigeria’s notable policy groups, the Independent Media...

Standard Bank Closes $250m Strategic Financing for Aradel Energy

Stanbic IBTC Capital Limited, Stanbic IBTC Bank Limited and...

First Asset Management Receives Upgraded Ratings from Agusto & Co, DataPro

First Asset Management, a subsidiary of FirstHoldCo Plc has...

SERAP Sues Adelabu, NBET over ‘Failure to Account for Missing N128bn in Power Ministry’

Socio-Economic Rights and Accountability Project (SERAP) has filed a...

Topics

Interswitch Partners American Express to Broaden Acceptance of Amex Cards in Nigeria

    (L-R) Akeem Lawal, DCEO, Payment Processing, Interswitch; Vivi Galani,...

‘OML 29 Is Not For Sale’–Aiteo

Below is an official statement from the Aiteo Group...

 CBN Approves Stanbic IBTC’s Executive Management Promotions

Demola Sogunle Chief Executive Stanbic IBTC Holdings PLC The Central Bank of...

Global Airlines Financial Monitor: February 2018

The latest airline financial results indicate that the...

Sterling Bank: The Romance with The Arts at 10th Ake Festival

Ivorian artist and headline author, Veronique Tadjo; winner of...

Sanlam, Allianz Merge to Enhance Operations in Nigeria

Sanlam, Africa's biggest non-banking financial services powerhouse, and Allianz,...

Danbatta: Digital Literacy Will Drive Sustainable Socio-Economic Growth

R-L: Danbatta and Mele Kyari, GMD of NNPC at...
Exit mobile version