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  • Excitement, Commendations as Zenith Bank Pays N94.2bn Dividend

    Excitement, Commendations as Zenith Bank Pays N94.2bn Dividend

     

    Shareholders of Zenith Bank Plc on Tuesday approved the payment of proposed N94.19 billion dividend for the year ended December 31, 2020.

     

    The shareholders commended the board and management of the bank for the improved financial results and dividend payment, which translated to N3.00 per share. An interim dividend of N0.30 was paid last year while a final dividend of N2.70 was recommended and would be paid after the approval by the shareholders.

     

    The shareholders were excited that despite a challenging macroeconomic environment exacerbated by the COVID-19 pandemic, Zenith Bank Plc posted gross earnings of N696.5 billion, which showed an increase of 5 per cent from N662.3 billion reported in the previous year.

     

    Non-interest income grew by 8 per cent from N232.1 billion in 2019 to N251.7 billion in 2020 and while non-interest income rose from N415.6 billion in 2019 to N420.8 billion in 2020.

     

    Similarly, profit before tax (PBT) increased by 5.0 per cent, growing from N243.3 billion to N255.9 billion in 2020 as a result of a blend of growth in the top line and a significant reduction in interest expense. Interest expense reduced from N148.5 billion in 2019 to N121.1 billion in 2020, significantly increasing the net interest income from N267.0 billion in 2019 to N299.7 billion in 2020.

     

    The group’s increased retail activities translated to a corresponding increase in retail deposits and loans. Thus, retail deposits grew by N612.7 billion from N1.11 trillion to N1.72 trillion, while savings balances grew by 88 per cent to close at N1.16 trillion.

     

    According to the bank, this retail drive, coupled with the low-interest yield environment helped reduce the cost of funding from 3 per cent to 2.1 per cent and reduced interest expense.

     

    Although returns on equity and assets also reduced from 23.8 per cent to 22.4 per cent and from 3.4 per cent to 3.1 per cent, respectively, Zenith Bank still delivered improved earnings per share (EPS), which grew 10 per cent from N6.65 to N7.34 in 2020.

     

    A further breakdown of the performance showed that the group also increased corporate customer deposits, which alongside the growth in retail deposits, delivered total deposit growth of 25 per cent to close at N5.34 trillion, and drove growth in market share.

     

    Total assets also increased by 34 per cent, from N6.35 trillion to N8.48 trillion. In spite of the COVID-19 pandemic and its associated challenges, the group created new viable risk assets as gross loans grew by 19 per cent from N2.46 trillion to N2.92 trillion. This was achieved while maintaining a stable and low overall NPL ratio of 4.29 per cent compared with 4.3 per cent in 2019 across the entire portfolio and an increase in the cost of risk from 1.1 per cent to 1.5 per cent, reflecting the elevated risk environment in 2020.

     

    The group recorded liquidity and capital adequacy ratios of 66.2 per cent and 23 per cent and remained above regulatory thresholds of 30 per cent and 15 per cent, respectively.

     

    Consistent with this superlative performance and in recognition of its track record of excellent performance, Zenith Bank was voted as Bank of the Year (Nigeria) in The Banker’s Bank of the Year Awards 2020, Best Bank in Nigeria in the Global Finance World’s Best Banks Awards 2020 and Best Corporate Governance ‘Financial Services’ Africa 2020 by the Ethical Boardroom.

     

    Also, the bank emerged as the Most Valuable Banking Brand in Nigeria, for the fourth consecutive year, in the Banker Magazine “Top 500 Banking Brands 2021” and Number One Bank in Nigeria by Tier-1 Capital in the “2020 Top 1000 World Banks” Ranking published by The Banker Magazine. Similarly, the bank was recognised as Bank of the Decade (People’s Choice) at the THISDAY Awards 2020, Retail Bank of the year at 2020 BusinessDay Banks and Other Financial Institutions (BOFI) Awards, and Best Company in Promotion of Good Health and Well-Being as well as Best Company in Promotion of Gender Equality and Women Empowerment at the Sustainability, Enterprise and Responsibility (SERAS) Awards 2020.

  • NCAA Suspends Azman Air Operations

    NCAA Suspends Azman Air Operations

     

    The Nigerian Civil Aviation Authority, NCAA, has suspended Azman Air flight operations.

     

    In a statement on Tuesday, NCAA Director-General, Capt. Musa S. Nuhu, said the suspension was with immediate effect.

     

    The regulatory authority said that following series of incidents involving the airline’s Boeing 737 aircraft, it has to shut down the operations of the local carrier.

     

    “NCAA has pursuant to Section 35 (2) of the Civil Aviation Act, 2006 and Part 1.3.3.3 (A) of the Nigeria Civil Aviation Regulations (Nig.CARs) 2015, suspended the operations of all the Boeing 737 aircraft in the fleet of Azman Air Services Limited, with effect from March 15, 2021,” the statement said.

     

    The authority also explained that the suspension was to enable it conduct an audit of the airline to determine the root cause(s) of the incidents, and recommend corrective actions to forestall re-occurrence.

     

    “The NCAA regrets the inconvenience this action may cause to the public, particularly to Azman Air passengers but the need to ensure the safety of air transport and protect the public interest cannot be compromised.

     

    “The Nigerian Civil Aviation Authority will continue to ensure compliance to its regulations in the interest of safety and will viewed any violation(s) seriously,” the statement added.

     

    Earlier yesterday, Azman Air had sent a message through its twitter account, @AzmanAir that it would suspend its operations in order to carry out an audit of its safety processes.

     

    The airline did not say that it was directed by NCAA to do so.

     

    “Due to strong stance on safety, @AzmanAir will be undergoing an audit of its safety processes as supervised by the regulators. In this regard, all our operations are hereby suspended. We are on our toes to restore operations within a short period. Kindly accept our apologies,” the airline stated.

     

  • Stanbic IBTC Expands Services With Life Insurance Subsidiary

    Stanbic IBTC Expands Services With Life Insurance Subsidiary

     

    Stanbic IBTC Holdings PLC, a member of Standard Bank Group, has introduced an insurance subsidiary – Stanbic IBTC Insurance, thereby adding to its ever-growing bouquet of financial services available to the public.

     

    The addition of the insurance subsidiary followed regulatory approvals as well as the issuance of a license from the National Insurance Commission (NAICOM) which granted the new entity the right to commence its business operations.

     

    Speaking at the launch of the new business, Akinjide Orimolade, Chief Executive, Stanbic IBTC Insurance stated that the new business will continue in the vision and tradition of the Group through the provision of innovative and customer-friendly insurance products.

     

    Stanbic IBTC Insurance has developed a variety of simple Life insurance products that will address the unique insurance needs of its customers.

     

    It will also facilitate long-term insurance for individuals by offering them innovative and seamless insurance solutions that can be accessed electronically with ease. This means that consumers will be able to purchase insurance products, make timely claims submissions quickly and efficiently from wherever they are.

     

    While commending the government and industry regulator – NAICOM, on the great achievements made in the insurance industry, Mr. Orimolade highlighted some improvements that would aid industry growth and enhance customer experience. At the top of the list would be for the National Insurance Commission to continue to collaborate with service providers to encourage the use of technology in delivering seamless insurance solutions to everyone.

     

    The Chief Executive also spoke on the low level of insurance penetration in the Nigerian market. He emphasised that there are bountiful opportunities to grow the Nigerian insurance market since less than 10 per cent of the Nigerian populace are currently insured, not to mention that more and more Small and Medium Enterprises (SMEs) are now seeking out insurance solutions. This is a clear indicator of room for growth in the industry. It will also be ideal for insurance to partner with Telcos to improve on the lives of customers.

     

    “The industry will develop as there will be an increasing need for business owners to prioritise insurance to protect their properties and lives,” Orimolade stated. He further highlighted the need to innovate and evolve to meet the changing needs of the insurance ecosystem and this is where Stanbic IBTC Insurance comes in.

     

    “The birth of Stanbic IBTC Insurance can be described as meeting a pressing need at the right time. The journey of a thousand miles, they say, begins with a single step and for us, several giant strides have been made. We are positive that this venture will bring smiles to the faces of our customers”; the Stanbic IBTC Insurance Chief Executive added.

  • Pay-Per-View: Bilesanmi Reads The Riot Act To Pay-Tv Operators as ATCIS Celebrates 2021 World Consumer Right Day

    Pay-Per-View: Bilesanmi Reads The Riot Act To Pay-Tv Operators as ATCIS Celebrates 2021 World Consumer Right Day

    By ADEBAYO Adeniyi
    The National President of the Association of Telephone, Cable TV and Internet Subscribers of Nigeria (ATCIS), Hon Prince Sina Bilesanmi has expressed disappointment with the Pay TV operators in the country over their failure to implement the much desired pay-per-view regime by Nigerians.

     

    Bilesanmi made this known as the association joined the rest of the world to mark the Year 2021 World Consumer/ Subscriber Rights Day on 15th March 2021 in Port Harcourt.

     

    The Association of Telephone, Cable TV and Internet Subscribers of Nigeria (ATCIS) is the nation’s number one subscriber advocacy body promoting subscribers’ interests as well as defending their rights with over 208 million telephone subscriber members across the six geopolitical areas of Nigeria.

     

    Since it was founded in 2014, ATCIS has been the leading telecom masses advocate.

     

    Speaking with his Excos members and press men at Port Harcourt in River State on his determination to continue to “SORO SO KE”, meaning speaking out and fighting for the rights of Nigerian Telephone, Cable TV and Internet subscribers, Hon Sina Bilesanmi aka OJUEKO, said over the years, in its sustained effort in protecting the interest and right of telecoms subscribers in Nigeria, the association, ATCIS has spent about N370 million since 2014 till date which has basically been on self- sponsored by members without Government agency like NCC, NBC,FCCPC and NIMC input.

     

    The association, he said, has made over 700 newspaper publications, both local and international as well as online news publication, radio and national television stations Interviews with about 98 landmark achievements so far.

     

    The ATCIS National President noted; “You and I have seen that indirectly, the operators of PAY TV control by NBC in Nigeria are doing everything to take us back to the past, when only a few people could afford to use the service. This may not be their direct action, but by implications, it is just more or less the same.

     

    “Today, we say NO to extortion of Nigerians by pay-tv operators in the country who have refused to listen to the laws of the land, pains and cries of the people as all they want is keep milking Nigerian subscribers even at a critical time such as this.”

     

    Bilesanmi said all subscribers in Nigeria are totally ashamed and disappointed with Mr. John Ugbe, Managing Director of Multichoice, operators of DSTV/GOTV based on his response on Pay-As –You Go.

     

    Ugbe had said the company would not be able to implement the policy of PAYGO.

     

    According to him, Pay Per View (PPV), is most times confused for PAYGO model deployed by mobile telecommunication companies.

     

    The PAYGO model as offered in the telecommunication business is a metered service where consumers are billed only for the service they consume and not for a fixed period.

     

    However, the ATCIS President said with whatever figure out there, he believed the time the operators have spent in Nigeria is enough for them to learn how to treat Nigerian subscribers with fairness and empathy, given how much they make yearly from their operations in the country.

     

    He said on the contrary however, they have continued to be insensitive and nonchalant.

     

    “From where we stand, ATCIS can say that these people lack regards for subscribers satisfaction and sense of social responsibility.

    “To clear any doubt, this attribute manifested as the operators insisted on hiking subscription rates in Nigeria, even at the peak of the Coronavirus pandemic which had already wrecked havoc on the means of livelihood of many Nigerians.

     

    “MultiChoice and Startimes, for instance, insisted on collecting more from Nigerians. It was hell bent that Nigerians must pay more for the same service even when they earn less.

     

    Speaking further, Bilesanmi said; “On this matter, we have met MultiChoice and Startimes with a couple of times to iron things out. All our efforts and messages have been falling on deaf ears. In other countries, operators have had to soft-pedal on price increase in order not to burden their subscribers unnecessarily.”

     

    He noted that ATCIS remains resolute to ensure that pay-TV subscribers in Nigeria are treated with fairness by the operators.

     

    “We stand against price hikes that smack of extortion and exploitation. The fact that Nigerians are getting used to the pay-tv services does not mean we should be incurring more cost than necessary, especially as majority of the people spend only few hours to access the content. There should be fairness in pricing.”

     

    According to him, Pay-per-view is the way to go.

     

    “We have said this over and over again. The only thing that we want to say is that, pay-tv subscribers from the jaws of the operators are to start running Pay-per-view model. Years have passed and we are still on this matter. We are not asking the operators to give us the service pro bono, all we are saying is: let us pay only for what we watch and nothing more.

     

    “We are aware that ATCIS, the initiators who pushed pay as you go to Senate/House of Representative Committee on Communications recently summoned one of the operators to talk about the possibility of running pay-per-view subscription model in Nigeria. Of course, the response of the operators will always be predictable. They will keep telling us that technically, pay-per-view is not possible.

     

    “We are not surprised to hear this however. Something similar had happened before when we were made to believe that per seconds billing of GSM voice service was an illusion. But later, the impossibility suddenly became a possibility when another operator introduced per second billing system.

     

    “So, we refuse to buy the idea that pay-per-view is not possible in Nigeria because this same model is being used in some other countries.

     

    “We insist that there must be a new subscription regime for pay-tv operation in Nigeria. Even if the current subscription model would be retained, we need pay-per-view model to be another option. This will give people a choice.

     

    Speaking on NBC, Bilesanmi said ATCIS is worried to see that after the Nigerian authorities gave directives to the operators, Startimes, especially MultiChoice, the owner DSTV/GOTV to reduce subscription rates and introduce pay-per-view model, nothing has changed despite the clamour of the people’s.

     

    “To our utter disbelief, nobody has been sanctioned or called to face the music. We sometimes wonder if our government authorities are truly for us; or if at all they even possess the nerve to face those that are violating the laws of the land. Extortion of the people via pricing is not just a subtle offence; it is a serious issue that must be addressed.”

     

    “At this point, We demand that Nigerian authorities, such as the National Broadcasting Commission (NBC), Ministry of Information and Culture, Ministry of Telecommunication and Digital Economy, Nigerian Communication Commission.(NCC), Federal Competition & Consumer Protection Commission and the National Assembly work together to carry out a cost-based research of the pay-tv market to be able to set floor and cap for subscription rates in the country.

     

    “Secondly, in respect of pay-per-view, ATCIS urge the authorities again to stop depending on only what they are told by operators as regards the technical possibility of the pay-per-view model. This is nothing but laziness on the part of the Nigerian authorities. We still remember vividly how such indolence in telecoms sector cost Nigerians billions of naira two decades ago because the authorities simply believed what they were told that per-second billing system was not possible.

     

    “Let the authorities do their thorough research regarding pay-per-view model and how it is being used in other countries and why Nigeria cannot be an exception. If they can do this, they would not need to be ladled by the operators whose primary intention, if not only interest, in Nigeria is to make money even at the expense of subscribers’ welfare.

     

    “To President Muhammadu Buhari , we believe now is the right time for this administration to fire leaders of those agencies that are not ready to work with him to promote the rights of subscribers through the agencies. So much is expected from National Broadcasting Commission, Nigerian Communication Commission, Orientation Agency, Federal Competition and Consumer Protection Commission, FCCPC and others. The failure of the agencies will be blamed on the Buhari’s administration. The President must rise up and do something.

     

    “We can see that, through ATCIS the Nigerians have awakened to defend their rights and interests because they have waited for too long for the authorities to do the right thing but with no hope in sight.

     

     

    “Late Chief Awolowo said that, Nigerians will rise to fight for themselves because nobody will fight for them. Oppressor are Network Providers, Pay Tv investors like DSTV, GOTV, STARTIMES, the bad one’s among Govt agency, Lawmakers, Policy makers, who do not give freedom willingly for example ATCIS have demanded since March 10, 2020, today make it one year ago we demanded all this items listed from Govt agency in Nigeria (NCC, NBC & FCCPC ) they’re the major problem to 208 Million Subscribers from NCC & NBC to MNOs that;

     

    (1) As stakeholders; ATCIS must always be carried along.

     

    (2) Any products by Mobile Network Operators / Service Provider’s for Subscribers interest must seek ATCIS endorsement.

     

    (3) Improved quality of Telecom Services.

     

    (4) Reduction in the tariff’s of Data & Voice.

     

    (5) Drop call should be uncharged for.

     

    (6) Borrowing of funds at 15% interest rate is a high rate, ATCIS call for 5% charge’s

     

    (7) Affordable & Reliable internet service should be provided for Subscribers

     

    (8) Free data & call’s on every Nigeria independent day October 1st, just one day to all my members with over 200 million Subscribers yet to be implemented, NCC should take note,

     

    (9) Oppressor are those from NBC who are against Pay Per View or Pay As You Go (PPV or PAYG).

     

    “Until we Telecom Subscribers, Concerned Lawmakers, Policy makers, Govt. agency in Nigeria stand up together and demand for our rights as a King not a slave. Know your Rights as a Subscribers, Be Respected & Be protected. ATCIS is watching, ATCIS number is our Strength.

     

    Bilesanmi said the ATCIS Success Story achievements so far would be unveiled to all Subscribers at a Press Conference which will come up by next Month April 2021.

     

  • WTO Worried About Nigeria’s Exchange Rate Regime, Says Okonjo-Iweala

    WTO Worried About Nigeria’s Exchange Rate Regime, Says Okonjo-Iweala

     

    The Director-General of the World Trade Organization (WTO), Ngozi Okonjo-Iweala, says the world trade body is worried about Nigeria’s multiple exchange rate regime and how it affects international trade.

     

    While responding to questions from journalists after a meeting with President Muhammadu Buhari in Abuja on Monday, the former finance minister said some member states of the WTO have complained about Nigeria’s invoking the balance of payment agreement to make to be able to conserve foreign exchange.

     

    “WTO has one of the agreements of balance of payments, and Nigeria certainly invoked this to be able to conserve foreign exchange. But some other members have brought a complaint against us (Nigeria) that we shouldn’t have used this article in that way,” she said.

     

    “Yes, the WTO is concerned about foreign exchange, the way we manage it, the way we use it, and how we use it to support manufacturing or imports and exports in our economy.”

     

    Okonjo-Iweala said she will meet with Godwin Emefiele, governor of the Central Bank of Nigeria (CBN), to further discuss the situation.

     

    “I think that we had that discussion with them, they complaints about the exchange rate regime and we (Nigeria) try to explain.

     

    “I shouldn’t say we because I’m now DG WTO, it is for Nigeria’s representative to explain to the WTO, to those members complaining why we’re doing this.

     

    “But eventually, I think having a strong exchange rate and being able to phase out of this, I think we’ll be heading in that direction. We’re also going to see the governor of the central bank, and will undoubtedly discuss some of these issues.”

     

    Commenting on the non-functioning WTO’s dispute settlement system, Okonjo- Iweala said there would be discussions with all members including the United States on how to make it work again.

     

    She said this was because the rules-based organisation could not continue to make rules without its dispute settlement system operating effectively.

     

    On COVID-19, the DG said the trade organisation would contribute more to the solutions of vaccines therapeutics and diagnostics, especially to poor countries.

     

    She advised the Nigerian government to establish local vaccine manufacturing companies as the coronavirus pandemic will not be the last.

     

  • NEWS FLASH: Over 23 Million Nigerians Jobless As Unemployment Rate Hits 33.3%  -NBS

    NEWS FLASH: Over 23 Million Nigerians Jobless As Unemployment Rate Hits 33.3%  -NBS

     

    Nigeria’s unemployment rate rose from 27.1 per cent in the second quarter of 2020 to 33.3 per cent in the fourth quarter of 2020, the latest figures from the National Bureau of Statistics revealed on Monday.

     

    The NBS stated in its report on ‘Labour force Statistics: Unemployment and underemployment report- Abridged labour force survey under COVID-19 (Q4, 2020) that this translates to 23.19 million unemployed people.

     

    Part of the report read, “During the reference period, the computed national unemployment rate rose from 27.1 per cent in Q2, 2020 to 33.3 per cent in Q4, 2020, while the underemployment rate decreased from 28.6 per cent to 22.8 per cent.

     

    “A combination of both the unemployment and underemployment rate for the reference period gave a figure of 56.1 per cent.

     

    “This means that 33.3 per cent of the labour force in Nigeria or 23,187,389 persons either did nothing or worked for less than 20 hours a week, making them unemployed by our definition in Nigeria.

     

    “This is an additional 1,422,772 persons from the number in that category in Q2, 2020.

     

    “Using the international definition of unemployment, the rate was computed to be 17.5 per cent.”

  • Polaris Bank Begins Payment of N5 Per Dollar

    Polaris Bank Begins Payment of N5 Per Dollar

     

    Polaris Bank said it has commenced implementation of the regulatory Central Bank of Nigeria’s extra N5 for every dollar received into domiciliary accounts or as cash over the counter.

     

    It said this in a statement on Monday titled ‘Polaris Bank pays extra N5 for every dollar remitted to Nigeria’.

     

    The acting Managing Director/Chief Executive Officer, Polaris Bank, Mr Innocent Ike, disclosed that “Growing evidence has shown a positive relationship between diaspora remittances and economic growth and as such, the bank will continue to contribute its quota to enhancing economic development in the country.”

     

    He explained that the decision was in line with the CBN’s directive and fully aligned with efforts to encourage the inflow of diaspora remittances into the country.

     

    The banker described the “CBN Naira 4 dollar scheme” as an unprecedented incentive for senders and recipients of international money transfers, noting that the scheme which took effect from 8th March, will run till 8th May, 2021.

     

    “We have started paying extra N5 on every dollar to beneficiaries at our branches. This is in addition to the foreign currency they receive from their family and friends abroad,” he stated.

     

    Polaris Bank is a future-determining bank committed to delivering industry-defining products and services across all sectors of the Nigerian economy, the statement said.

  • WTO DG, Okonjo-Iweala, Arrives Nigeria On Working Visit

    WTO DG, Okonjo-Iweala, Arrives Nigeria On Working Visit

     

    The new Director-General of the World Trade Organisation, Dr Ngozi Okonjo-Iweala, on Saturday, arrived in Nigeria on a one-week working visit.

     

    Okonjo-Iweala resumed at the Geneva-based WTO on March 1, 2021, breaking a 26-year record by becoming the first female and first African director-general of the global trade and dispute settlement body.

     

    Addressing newsmen shortly after her arrival via the Nnamdi Azikwe International Airport, Abuja, on Saturday, the 66-year-old former Finance Minister said she is in the country to see how to better assist Nigerian entrepreneurs and improve the economy.

     

    She stressed the need for Nigeria to explore its share of trade in Africa through the African Continental Free Trade Area agreement.

     

    The former World Bank director also said she will meet with President Muhammadu Buhari and a number of ministers in the coming days.

     

    The Nigerian development economist, known for her African print Ankara wears and peculiar headgear usually tilted at a convenient angle, said in a recent interview that she unabashedly “love being African and being Nigerian”.

     

     

  • N42bn Debt: Telcos To Shutdown Banks’ USSD Services From Monday

    N42bn Debt: Telcos To Shutdown Banks’ USSD Services From Monday

     

    The Association of Licensed Telecommunications Operators of Nigeria, ALTON has said telcos will disconnect Financial Service Providers from Unstructured Supplementary Service Data services from March 15 until they pay their over N42bn debt.

     

    The association announced this in a statement titled ‘Withdrawal of USSD services to financial service providers due to huge indebtedness to telecom network operators’.

     

    The statement was signed by ALTON and Chairman, Gbenga Adebayo, and Head of Operations, Gbolahan Awonuga.

     

    ALTON explained that the service withdrawal had become necessary due to the lack of agreement on a payment structure with the banks that did not involve the end-user being asked to pay.

     

    It noted that following the issuance of the USSD pricing determination by the Nigerian Communications Commission which resulted in a price review of USSD service by the telcos, the banks decided that they would no longer pay for USSD service delivered to their customers and requested the telcos to charge customers directly for use of the USSD channel.

     

    The telcos complained that the banks, however, provided no assurances that such service fees charged to customers’ bank accounts for access to bank services through the USSD channel would be discontinued post implementation of end-user billing by the telcos.

     

    The statement said, “It has been more than eight months since the NCC issued an updated pricing methodology for USSD services for financial transactions in Nigeria.

     

    “The methodology explicitly restricts Mobile Network Operators from charging the end user for the services and mandates the banking sector to enter into negotiations to settle outstanding obligations and agree individual pricing mechanisms to be applied going forwards

     

    “During this time, MNOs have continued to provide access to USSD infrastructure and our members have continued to pay all bank charges and fees to access the banking industries assets and customers, despite the fact that obligations due from banks to telecoms companies for USSD services has reached over N42bn.”

     

    The telecom operators said this was in consideration of millions of Nigerians who had become more reliant on accessing financial services through the USSD infrastructure due to COVID movement restrictions.

     

    They noted that due to the inability of the banks to agree on a payment structure, the government had been forced to intervene to ensure a sustainable cost-sharing solution was agreed that did not disadvantage the consumer in the long-term.

     

    The association said the removal of the service fees by the FSPs would have meant that if bank customers were charged only the USSD costs communicated by telcos per USSD session, bank customers would be paying far less than what they were currently being charged by the FSPs, which in some instances were as high as N50.

     

    They added that both the banks and telcos would be applauded for collaborating towards the financial inclusion objectives of the Federal Government.

     

    ALTON said, “We deeply regret that we have reached a point where the withdrawal of these services has become unavoidable. However, we remain committed to working closely with the relevant ministries and regulators to resolve this issue as quickly as possible.

     

    “To minimise the disruption to customers, and with the concurrence of the Minister of Communications and Digital Economy and the Nigerian Communications Commission on the huge debt to network operators; MNOs will disconnect debtor FSPs from USSD services until the huge debt is paid.

     

    “Therefore, our members are initiating a phased process of withdrawal of USSD services, starting with the most significant debtors within the FSPs effective Monday March 15, 2021.”

     

    They encouraged subscribers to explore alternative channels with their banks.

  • Banks Owe Telcos N42bn For USSD Services, Says NCC

    Banks Owe Telcos N42bn For USSD Services, Says NCC

     

    Deposit Money Banks owe telecommunications companies N42bn for services provided by the mobile network operators through the Unstructured Supplementary Service Data, the Nigerian Communications Commission has announced.

     

    Executive Vice Chairman, NCC, Prof. Umar Danbatta, announced this during his lecture at the virtual 2021 edition of the Bullion Lecture.

     

    He explained that the indebtedness of the banks to mobile network operators had been an issue over time, but stressed that the NCC was working hard to address the concern.

     

    Danbatta said, “The issue of the USSD has become an issue between the telcos and the banks. The telecommunication companies provide the infrastructure which the banks leverage on to provide banking services of all kinds.

     

    “Therefore it is expected that for this service someone should pay. No service is free. The investment in infrastructure that is driving the USSD service is a huge investment that the telcos made.”

     

    The NCC boss added, “It is expected that they (telcos) will recoup their investments in order to continue and to expand the service. About N42bn that is owed the telcos has not been paid by the banks for the provision of this service.”

     

    Danbatta said the telecommunications firms could not withdraw their services to the banks because such action would not go down well with the Federal Government.

     

    He said, “The telecommunications companies cannot unilaterally withdraw this service because it will be seen as a subversive act, undermining the digital inclusion strategy of the present government.

     

    “And no government will sit back and watch while services that empower citizens are being tampered with or withdrawn. No government will standby and watch this to happen.”

     

    To address the situation, Danbatta said the NCC would soon engage the DMBs and ensure that the matter was resolved.

     

    “So in the next couple of days, we are poised to engage the banks and ensure we reach an amicable resolution where the first item on the agenda that will feature is the payment of this N42bn accumulated debts to the telecommunications companies.

     

    The NCC boss further stated that it was important for the country to meet the critical requirements needed in order to succeed in its drive towards digital inclusion in Nigeria.

     

    He said digital financial services were offered through the use of a mobile phone, which many residents in rural areas could not afford.

     

    “They (rural residents) need phones that are affordable and therefore we must direct our resource in a manner that will bring affordable handsets to the rural population,” Danbatta stated.