The Association of Licensed Telecommunications Operators of Nigeria has defended the controversial N6.98 USSD charge imposed on banking transactions and pushed back against growing consumer criticism over data expiration policies, arguing that telecommunications companies still incur costs even when digital banking services fail.
The remarks come amid increasing public frustration over charges attached to USSD banking services and the expiration of unused mobile data, issues that have become recurring complaints among Nigerian telecom subscribers.
Speaking during a live programme on Nigeria Info FM 99.3 hosted by Jimi Disu, ALTON Chairman Gbenga Adebayo said telecom operators merely provide the connection infrastructure that enables customers to access banking platforms and should still be compensated for that service regardless of whether transactions are successful.
“The phone company is like a taxi taking you to the bank’s digital office,” Adebayo said during the April 25 broadcast. “Even if the bank’s system is down when you get there, you still have to pay the taxi man.”
Adebayo said the Nigerian Communications Commission and the Central Bank of Nigeria are currently reviewing operational data to determine responsibility for failed USSD transactions between banks and telecom operators.
According to him, telecom providers expend network resources each time a subscriber attempts a transaction, including repeated attempts triggered by bank system failures.
“If a customer retries a transaction several times because the bank platform is unavailable, the telecom network still provides the connection every time,” he said.
On the issue of data expiration, Adebayo rubbished claims telecom operators deliberately shortchange consumers, explaining that mobile data plans are structured around fixed subscription periods such as seven-day or 30-day cycles.
“You can’t carry it in perpetuity,” he said, adding that subscribers can preserve unused data through rollover options if they renew subscriptions before expiration dates.
He also addressed concerns around the availability of toll-free customer service lines, saying many consumers misunderstand how such services operate.
According to him, toll-free numbers are not actually free, as the receiving business or institution absorbs the cost of each call through reverse billing arrangements.
“In today’s economic environment, fewer organisations are willing to bear those costs,” he said.
The ALTON chairman also linked persistent service quality challenges in the telecom sector to vandalism, power shortages and infrastructure damage, arguing that regulatory fines alone cannot resolve underlying operational constraints.
He said improving network quality would require stronger protection of telecom infrastructure and broader public understanding of the economics behind digital connectivity services.
