According to a statement issued by the association and signed by Chairman, Gbenga Adebayo, recently, the authorisation to disconnect Deposit Money Banks is due to the refusal to pay the debt owed to operators for Unstructured Supplementary Service Data services, to the tune of N120bn.

“Members of the public will recall that MNOs and DMBs have had protracted disagreements concerning the appropriate USSD pricing model for financial transactions, transparency of charges, mode of collection, and liability for payment of the outstanding and continuous service fees due to the MNOs (which currently stand at over N120 billion).”

The operators under the aegis of the Association of Licensed Telecoms Operators of Nigeria said that with the NCC’s approval, banks will be disconnected if they fail to pay up.

Following the debt problem ALTON explained that despite stakeholder efforts to resolve this situation and prevent any impact on services, led by the Minister of Communication and Digital Economy, Prof. Isa Ali Pantami, and including the NCC, the Central Bank of Nigeria, and MNOs and DMBs.

The banks refused to cooperate with the telecom operators over the payment of the debt. It noted that The DMBs have continually incurred debt, without efforts to settle previous payments.

Prior to making this decision, ALTON said in 2021 DMBs incurred a N42bn debt which the MNOs planned to take action on.

However, interventions from the Minister of Communication and Digital Economy, Prof. Pantami, discouraged the MNOs stating that the action would negatively impact the Digital and Financial Inclusion policy of the Federal Government.

“The Nigerian Communications Commission, Association of Licensed Telecoms Operators of Nigeria, Association of Telecommunications Companies of Nigeria and Deposit Money Banks represented by the Chairman, Body of Bank CEOs subsequently met on 15 March 2021 to discuss indebtedness of DMBs to MNOs for USSD services.

In that regard, CBN and NCC issued a joint press statement on the agreement reached by all stakeholders.

“The Honourable Minister of Communications and Digital Economy and the NCC have made several efforts to get the banks to show good faith and sign an agreement, in the national interest, based on the resolutions reached that meeting.

“Unfortunately, the patriotic intervention of the Minister and the NCC have been taken for granted by the DMBs, as two years after, the banks have failed to sign a final agreement,” ALTON explained.

“It is pertinent to note that the contract between MNOs and DMBs on the use of USSDs for banking transactions is strictly commercial and MNOs are at liberty to withdraw the services if it is established that the transaction is unprofitable to them.

ALTON highlighted that the MNOs had invested billions of naira in expanding its systems to accommodate the USSD needs of DMBs over the years.

Which has allowed Nigerians seamless access to banking services,” in addition to enabling banks to trim costs by requiring fewer branches to service their growing customers. Unfortunately, MNOs are not getting paid for their services, and the debt that stood at N42bn in 2021 has now risen to over N120bn,” the telcos added.

Operators opined that the current debt level was exorbitant taking into consideration of ongoing upgrades and operation of the systems and infrastructure dedicated to supporting USSD transactions for DMBs

Airtel Nigeria conceptualized the programme to feed 5000 beneficiaries as part of it’s Corporate Social Responsibility with Ojodu LCDA selected as one of the target communities in which residents benefit from the feeding programme.

Hon. Segun Odunmbaku as a special guest of the occasion commended the company for the CSR programme which is in tandem with the H.E.Y.S Agenda of his administration and THEMES agenda of the Lagos State Government which is centered around social development through initiatives in Healthcare, Education and Youth and Women Development.

The Ojodu LCDA Mayor also implore other corporate organisations to emulate such laudable initiatives as CSR and that his administration is always open to partnering with such organisations to add value and improve the socioeconomic conditions of Ojodu people.

In attendance at the event are the Chief Commercial Officer of Airtel Nigeria, Femi Oshinlaja, Regional Operations Manager, Chika Obanar, Senior Business Manager, Edwin Unoko, Regional Business Manager, Ms Veronica Nwosisi, GM Human Resources, Oladipupo Babalola and Head Of CSR, Chioma Okoklie.

The telcos, MTN and Airtel, disclosed in their recent earnings report that 16.2 million subscribers who had their lines barred have submitted their NINs for verification but only 6.5 million had been verified as of September 30, 2022.

In April, over 72.77 million GSM lines were barred from making calls on their SIMs, following a directive from the Federal Government as regards subscribers that had not linked their SIMs and NINs.

It said the President, Major General Muhammadu Buhari (Retd.), “has approved the implementation of the policy with effect from April 4, 2022. Consequently, the Federal Government has directed all telcos to strictly enforce the policy on all SIMs issued (existing and new) in Nigeria.

Outgoing calls will subsequently be barred for telephone lines that have not complied with the NIN-SIM linkage policy from April 4, 2022.”

According to MTN and Airtel 19 million and 13.6 million subscribers respectively were affected by the ban. The telcos further stated that the implementation of the policy has affected their revenue.

Airtel said, “In April 2022, the voice services for 13.6 million customers were barred due to non-submission of NIN information. As of September 2022, 5.7 million customers (42 per cent) have subsequently submitted their NINs and 2.7 million customers (20 per cent) have been fully verified and unbarred. Revenue growth for the first half of the year was impacted by the effect of barring outgoing voice calls in Nigeria for those customers who had not submitted their NINs.

Airtel is a leading provider of telecommunications and mobile money services with presence in 14 countries across Africa.

Ogunsanya is to succeed Raghunath Mandava, following Mandava’s decision to retire.

According to a statement from the group on Thursday, Ogunsanya will join the board of Airtel Africa plc with effect from October 1, 2021.

Ogunsanya joined Airtel Africa in 2012 as MD/CEO Nigeria and has been responsible for the overall management of operations in Nigeria.

The group stated that he had over 25 years’ business management experience in banking, consumer goods and telecoms.

Chairman, Airtel Africa, Sunil Mittal, expressed his delight with the new appointment, while appreciating Mandava for transforming the group into a powerhouse telecommunications and mobile money company.

He said, “Ogunsanya has displayed significant drive and energy in turning around the Nigeria business by focusing on network modernisation, distribution, and operational efficiency.

“It is this commitment, together with his industry experience, strategic vision, constant customer focus and proven record of delivery that will enable him to continue to deliver our strategic objectives and to lead the group in the next stages of its development.”

“I am thankful to Airtel Africa for providing me and my team the opportunity to transform the business and fulfil our responsibility to the countries in which we operate. It has been a privilege to serve in the African continent and I cherish my time here,” Mandava said.

Ogunsanya appreciated the new position, adding that he felt honored as an African to lead the group.

“This is an exciting opportunity to position Airtel Africa for further success in a dynamic continent full of potential. I look forward to building on the achievements of the last five years during Raghu’s leadership,” he said.

Mandava would be retiring as MD/CEO, as Director of Airtel Africa plc and as a member of the Market Disclosure Committee on 30 September 2021.