Telcos Defend USSD Charges and Data Expiry

Nigerian telecom operators are refusing to budge on the contentious N6.98 fee for bank transactions and data expiration rules. Gbenga Adebayo, chairman of the Association of Licensed Telecommunications Operators of Nigeria, argues that providers must get paid for every connection attempt. He compares his members to taxi drivers who expect a fare even if the passenger finds their destination closed. Telcos insist they burn network resources every time a user dials a code. This cost remains fixed regardless of whether the bank’s digital platform actually works.

Public anger is mounting over these charges and the loss of unused mobile data. Subscribers feel cheated when failed transactions still attract fees or when data vanishes at midnight. The industry regulator and the central bank are now digging through data to settle this fight. They want to see who is truly at fault when a transfer fails. Telcos claim that repeated attempts caused by bank system glitches put more strain on their infrastructure. They want the banks to take the heat for these technical lapses.

Data expiration remains a major point of friction for millions of mobile users. Adebayo maintains that data plans are time-bound services rather than permanent assets. He notes that subscribers can keep their data through rollover options if they renew on time. You cannot carry data in perpetuity just because you paid for it. The industry sees these cycles as essential for managing network capacity and revenue. Most users, however, view the practice as a legal way to seize paid-for value.

The decline of toll-free customer service lines is also causing frustration. These lines are not actually free. The business receiving the call must pay the bill through a reverse arrangement. In a tough economy, few companies are willing to swallow these costs. This shift leaves consumers paying to complain about services that are already failing. It reflects a broader trend where every digital interaction carries a price tag.

Network quality continues to suffer from more than just a lack of investment. Vandalism, power failures, and infrastructure damage are the real culprits, according to the industry. Telcos argue that government fines do nothing to fix a broken fibre cable or a stolen generator. They want the public to see telecom masts as critical national assets rather than targets for theft. Without better protection, service quality will remain erratic despite high tariffs.

The battle over USSD billing is as much about bank profits as it is about telco costs. Banks and telcos have locked horns for years over how to split the revenue from mobile banking. This current defense is an attempt to protect margins as operational costs rise. Investors want returns, but subscribers are reaching the limit of their patience. If the regulators do not find a fair middle ground, digital financial inclusion could stall. The taxi man wants his money, but the passengers are tired of paying for trips to nowhere.