Business

Customs, Banks Strangulating Telecoms, ALTON Cries Out

By Patrick Imo

Chairman of the Association of Licensed Telecommunications Operators of Nigeria, ALTON, Engineer Gbenga Adebayo,  has called for urgent intervention by the telecoms sector regulators, the National Communications Commission, NCC and Nigerian Information Technology Development Authority, NITDA, and by extension, the Federal Government of Nigeria to rescue the industry and the country from harsh and unprofitable policies.

This followed a directive by the Comptroller General of the Nigeria Customs Service as contained in a circular issued early November this year, directing all customs zonal coordinators not to allow petroleum product to be delivered to any filling stations within 20 kilometres radius to any border area in Nigeria, which he said is already having rippling negative effects on operatives of the Nigerian Telecommunications having led to shutting down of communications system and services in these areas.

He revealed that as at the time of going to press, major hub sites carrying heavy traffic are on the verge of being shut down due to lack of diesel, the consequences of which include worsening of security operations within those areas, among others saying these certainly defeat the reasons for the directive.

“The directive is already having a huge negative impact on our members’ operations and this may be significant if the necessary agencies of government do not urgently intervene in the situation.

“So far the Nigeria Customs Service has stopped our members’ trucks in Kebbi, Kano and Calabar from supplying diesel to the telecommunications sites within the borders areas, which may lead to total shut down of communications system/services and by implications worsen the security operations within those areas,” he declared.

In another development, the Association has assured Body of Banks’ Chief Executives, BOBCEOS and Nigerians in general of their commitment to the implementation of the financial inclusion objectives of the federal government through CBN and the banks so long as the collaboration and indeed entire process remains practicable and sustainable, and  must be based on mutual trust, accountability and transparency.

This is in response to letter said to have been sent to some members of ALTON alleging anti-competitive practices on Reverse Corporate Billing for Bank USSD services which among others accused the telecom operators of using the USSD cost to destroy the financial inclusion strides being made by banks thereby rendering the initiative of the federal government of Nigeria unsustainable and creating an impediment to the development and growth of the nation’s economy.

“We state the commitment of our members to supporting the implementation of National Policies of the Federal government remains unwavering. As responsible Nigerian Corporate entities, our members make significant socio-economic contributions to the country and have been an enabler to every single sector of the economy including the financial sector. For example, it will be impossible to connect Automated Teller Machines (ATMs) and Point of Sale Terminals (POS Terminals) across the length and breadth of Nigeria without our members dedication and support.

“In addition, the cashless policy drive and the instant payment solution of the financial sector would not have been possible without our members support. It is also worthy of note that  ALTON is committed to materially improve financial inclusion rates and to deliver access to financial services to 90million customers over 30 months if our members are allowed provide financial services directly to end-users. The foregoing validates our commitment to the socio-economic development of Nigeria and we are willing to do more as the government improves the ease of doing business.”

The Association also noted that ought to be aware that the revised USSD rates as proposed by telecom operators were based on the conclusion of a cost study by the NCC that was communicated in its ‘Determination of USSD Pricing 2019’ and came into effect in Septembers 1, 2019.  They further alleged that BOBCEOS apparently overlooked the fact that the NCC’s determination had varying impact on their members as some of them had to review their USSD prices downwards while those whose prices fell below the floor were compelled to do an upwards review, noting that BOBCEOS position does not in any way reflect the current cost structure and the realities of the USSD infrastructure usage.

Pix: ALTON Boss, Engineer Gbenga Adebayo