The circular, dated December 20, 2024, highlights the issues caused by over unpaid charges for the use of USSD platforms by banks. 

This debt, which has negatively impacted relations between the banking and telecommunications sectors, has continued despite previous interventions. 

The circular, jointly signed by CBN’s Acting Director of Payments System Management, Oladimeji Taiwo, and NCC’s Head of Legal and Regulatory Services, Chizua Whyte, was obtained earlier this week.

Key Settlement Terms

According to the directive, banks are required to pay 60% of all outstanding invoices issued before the implementation of Application Programming Interfaces (APIs) in February 2022. 

This payment, which serves as a full and final settlement of pre-API debts, must be agreed upon by January 2, 2025, with a deadline for full payment by July 2, 2025.

For debts incurred post-API implementation, DMBs must pay 85% of all outstanding invoices by December 31, 2024. Moving forward, the same percentage of any new invoices must be cleared within one month of issuance.

Shift to End-User Billing

One of the incentives for compliance is the transition to an End-User Billing (EUB) model, where customers would bear the cost of USSD services directly, removing banks from the billing process. However, this will only apply to banks and telecom operators that meet the outlined payment obligations.

Litigation to Cease

In a move to foster cooperation, the regulators have ordered an immediate halt to all legal disputes related to the USSD debt. They also announced plans for a public awareness campaign to educate Nigerians on the transition to EUB once it is implemented.

Measures for Defaulters

The circular warned that any bank or telecom operator failing to comply with the terms would face penalties, including fines and operational restrictions. This reiterates the regulators’ determination to bring stability to both sectors and ensure uninterrupted access to financial services via USSD platforms.

Impact on the Economy

The settlement of this debt dispute is expected to have a huge impact on Nigeria’s financial and telecommunications sectors. In resolving the issue, the regulators aim to promote collaboration, restore confidence, and prevent further disruptions to services that millions of Nigerians rely on daily.

The post CBN, NCC Say Banks Must Settle ₦250B USSD Debt, Set January, July 2025 as Deadlines appeared first on Tech | Business | Economy.

New data from the Nigerian Communications Commission (NCC) shows that 38 ISPs lost over 18,000 customers between Q3 2024 and Q1 2025, revealing the high cost pressures on households and businesses.

Starlink, the second-largest ISP in Nigeria and widely considered a premium option, suffered a significant drop. Its customer base fell by over 6,000; from 65,564 to 59,509. 

Spectranet, the oldest and largest in the sector, shed 2,189 subscribers, while FibreOne, once the third-biggest ISP by user count, recorded the steepest fall, losing more than 14,000 customers.

These numbers may look small in isolation, but in the bigger market space, they reveal a shrinking space for ISPs. 

While ISPs serve fewer than 300,000 users collectively, Nigeria’s mobile network operators (MNOs), MTN, Airtel, Globacom, and 9mobile, command over 141 million active internet subscriptions. That’s more than 99.8% of the market, and the gap is widening.

Why are users walking away? One clear reason is expenses. In February, the NCC approved a 50% increase in voice and data tariffs across all operators. Starlink soon followed, raising its monthly price from ₦38,000 to ₦57,000 by April. 

In contrast, broadband plans from mobile networks remained relatively affordable, making it a no-brainer for many to switch.

Jide Awe, a technology policy expert and founder of Jidaw.com, links the decline directly to the economic challenges. He told Nairametrics that “The rising costs of data, equipment, and power supply mean many families and small businesses have to cut costs and focus strictly on essentials. Maintaining subscriptions isn’t as much of a priority for many. Starlink, in particular, is more expensive in terms of device and subscription costs.”

Beyond price, MNOs have now muscled into the fibre broadband space, once a core domain for fixed-line ISPs. MTN and Airtel, for instance, are aggressively rolling out Fibre to the Home (FTTH) services, directly competing with traditional ISPs, and with more resources and deeper infrastructure reach.

“I don’t think this is fair to the smaller operators (the ISPs),” said Tony Emoekpere, President of the Association of Telecommunications Companies of Nigeria (ATCON). He also pointed to the tariff hike and the massive disparity in market share as additional issues.

It’s not just competition or cost. Operational realities are difficult for ISPs. Running diesel-powered infrastructure in a country with unstable power supply eats into profits. International bandwidth is so expensive, Right of Way (RoW) fees and multiple taxes in different states further drain resources. Urban areas suffer frequent cable vandalism and theft, slowing down service and customer confidence.

Of the 234 licensed ISPs in Nigeria, only 127 had any active users in Q1 2025. Many operate in survival mode, with no clear path to scale. Meanwhile, mobile networks are doing better, buoyed by reach, convenience, and price flexibility.

So what’s next for ISPs?

Awe believes the current model has run its course. “The ISPs should explore the provision of tailored services for SMEs, real estate, health, and education. With strategic planning, they can further digital transformation within sectors and across industries. In this regard, it is advisable to collaborate with agile, tech-savvy SMEs and startups to drive innovation.”

He also advises them to adopt bundled service models and reduce operating costs by investing in solar energy and local alternatives. Improving customer service, reliability, and delivering niche solutions could also help claw back market relevance.

But beyond business tweaks, many operators say the rules of the game need to change. NCC and policymakers need to create a level playing field that doesn’t leave fixed ISPs to fend for themselves against the Goliaths of the telecom industry.

Without regulatory support and an updated broadband strategy, Nigeria could end up with fewer ISPs, and even fewer real broadband choices.

The post ISPs Lose 18,000+ Customers as Nigerians Shift to Cheaper Mobile Networks appeared first on Tech | Business | Economy.

The forthcoming Summit, themed _”CNII: Strengthening Protection of Critical Information Infrastructure through Proactive Implementation and Strategic Coordination,”_ will bring together key players in the telecom industry, regulatory bodies, and government agencies to brainstorm on pressing infrastructure safety concerns.

The move is prompted by the recent designation of telecom facilities as critical national assets under the Critical National Information Infrastructure (CNII) Order, signed by President Bola Tinubu in August 2024.

Industry stakeholders have long expressed concerns over the vulnerability of telecom assets to attacks, vandalism, theft, and arbitrary shutdowns, resulting in significant annual losses and disruptions to telecommunications services.

Omobayo Azeez, Lead Executive of PIAFo, emphasised the importance of safeguarding the telecom sector, citing its crucial role in facilitating cross-industry linkages, efficiency, and productivity.

“The telecom sector is the live wire of the Nigerian economy. If it’s not well-protected, all other sectors will feel the ripples,” Azeez warned, recalling the nationwide telecom service disruption in March 2024 caused by undersea cable cuts with attendant economic losses estimated at $593.6 million.

Azeez highlighted the alarming frequency of fibre cuts, with over 50,000 incidents recorded in 2024 alone, resulting in service blackouts and significant repair costs.

“In 2023, operators reported spending over N35 billion to repair and replace installed fibre cables that were destroyed. This is a fortune that could have been otherwise committed to infrastructure expansion to improve quality of service,” he added.

To prevent a repeat of such incidents, PIAFo is championing a collaborative approach to infrastructure safety, promoting awareness, inclusivity, and partnerships with the Office of the National Security Adviser (ONSA), the agency tasked to implement the order, as well as other stakeholders.

The Summit, scheduled for March 20, 2025, at the Bon Hotel Ikeja Residence in Lagos, will feature expert discussions and presentations from invited speakers, including representatives from ONSA, the Nigerian Communications Commission (NCC), Galaxy Backbone Limited (GBB) and the Federal Ministry of Works (FMoW).

Other speakers include data centre operators, infrastructure companies (Infracos), Mobile Network Operators (MNOs), tower companies (Towercos), Internet Service Providers (ISPs), telecom lawyers, chiefs of security outfits, and State infrastructure regulatory agencies.

The event has also been endorsed by the Association of Telecommunications Companies of Nigeria (ATCON) and the Association of Licensed Telecom Operators of Nigeria (ALTON).

By convening this critical midpoint engagement platform, PIAFo aims to facilitate a comprehensive and inclusive approach to implementing the CNII Order, ensuring the long-term protection and growth of Nigeria’s telecom sector.

The post CNII: PIAFo Unites Stakeholders to Explore Telecom Infrastructure Protection Strategies appeared first on Tech | Business | Economy.

The NCC directive is in response to the increasing number of complaints from consumers who have voiced their dissatisfaction over what they perceive as unfair data consumption rates.

The NCC has mandated an independent audit of the MNOs’ billing systems to ensure transparency and fairness in data usage charges. This audit is expected to shed light on the technicalities behind data consumption and provide insights into how consumers can get the most value out of their data plans.

Again, the commission is launching an educational campaign to provide consumers with knowledge about data management. This initiative will provide valuable tips on how to prevent unwanted data depletion through smartphone settings and data usage monitoring.

Under the guidance of Dr. Bosun Tijani, Minister of Communications, Innovation and Digital Economy, the NCC reaffirms its goal to enhance Nigeria’s digital modification. The commission’s actions align with President Bola Ahmed Tinubu’s Renewed Hope Agenda, which emphasizes the importance of a sustainable digital economy as a cornerstone for national development.

The NCC’s directive is a collaboration with MNOs to enhance the quality of service and ensure that the benefits of digitalization are accessible to all Nigerians.

The post NCC Directs Telcos to Address Subscribers’ Data Depletion Concerns appeared first on Tech | Business | Economy.