Telecommunications
BANKS TO DEDUCT USSD CHARGES FROM CUSTOMERS’ AIRTIME IN NEW DIRECTIVE
The Nigerian Communications Commission (NCC) has directed Deposit Money Banks to start deducting charges for Unstructured Supplementary Service Data (USSD) transactions directly from customers’ mobile airtime balances. This move comes after years of disputes between banks and telecom operators over unpaid USSD service charges estimated at N250 billion.
United Bank for Africa (UBA) has confirmed compliance with the directive, stating that charges for USSD banking services will no longer be deducted from customers’ bank accounts. Instead, customers will be charged N6.98 per 120 seconds for each USSD session, billed directly by their mobile network operator and deducted from their airtime balance.
According to an NCC official, the new End-User Billing model is designed to bring transparency and accountability to the process, ensuring that telecom operators are paid directly. “It ensures that telcos are paid directly, removing the ambiguity that has stalled settlements in the past,” the official said.
A telecom executive familiar with the matter welcomed the change, saying, “This new system is a win for transparency. For years, we’ve delivered a service and gotten no payment. Billing via airtime ensures payment at the point of use.”
However, concerns have been raised about the impact on financially vulnerable customers. Bola Oke, a financial inclusion expert, warned that requiring airtime may reduce USSD usage among low-income users who depend on the service but may not always have airtime credit. “Many rural and low-income users rely on USSD because they lack smartphones or stable internet. If airtime becomes a barrier, we risk reversing gains in financial inclusion,” Oke said.
Customers using popular USSD codes such as *919# (UBA) and *737# (GTBank) must now ensure they have sufficient airtime to perform transactions. The NCC and Central Bank of Nigeria (CBN) have stated that the move aims to resolve longstanding frictions in the digital payments ecosystem while protecting the interests of all stakeholders.
Starlink, the satellite internet service owned by SpaceX, has reopened its Business (Priority) subscription plan in Lagos, Abuja and Port Harcourt after months of “Sold Out” notices in Nigeria’s major urban centres.
The reopening, which took effect on February 14, 2026, restores a previously suspended service tier that was paused alongside residential subscriptions as network congestion worsened in high-demand cities. The move does not introduce a new product but reactivates access to the premium package for customers willing to pay higher fees.
Under the Business plan, subscribers are required to pay ₦159,000 (about $99.38) monthly, excluding hardware costs that can exceed ₦4 million ($2,500). This places the package significantly above the residential plan, which currently costs ₦57,000 ($36) per month.
In several high-demand neighbourhoods such as Victoria Island, Ikoyi, Lekki and Surulere in Lagos, as well as parts of Abuja, new residential subscriptions remain unavailable. Prospective users in those areas are being prompted to either upgrade to the Priority plan or place deposits to join a waitlist without a definite activation date.
A review of multiple Lagos locations on Starlink’s website indicates that only Priority plans are currently accessible in many districts due to sustained demand pressures.
The development comes amid rising competition in Nigeria’s satellite broadband market. In January 2026, Amazon secured regulatory approval to operate its satellite internet service, Project Kuiper, in Nigeria—signalling intensifying rivalry in the sector.
Starlink’s capacity constraints in Nigeria, similar to challenges faced in Kenya, have been building since late 2024. After reaching capacity in major cities, the company became embroiled in a pricing dispute with the Nigerian Communications Commission over proposed tariff adjustments that had not received final regulatory clearance.
The disagreement contributed to an eight-month nationwide freeze on new residential subscriptions between November 2024 and June 2025. Although residential orders resumed in mid-2025 at moderated rates, demand in densely populated areas has continued to outpace available bandwidth, leaving several parts of Lagos and Abuja effectively closed to new home users since September 2025.
The Business plan offers either 1TB or 2TB of Priority Data monthly, after which speeds may be deprioritised, though data usage remains technically unlimited. Business subscribers also receive priority technical support and a publicly routable IPv4 address, a feature considered critical for organisations operating servers and secure enterprise networks.
Hardware requirements vary. While the standard Starlink kit costs approximately ₦590,000 ($369), business customers are advised to purchase the Flat High Performance dish, priced between ₦3.15 million ($1,969) and ₦4.1 million ($2,563), to ensure more stable connectivity in demanding environments.
Globally, Starlink has accelerated satellite deployment. As of February 24, 2026, SpaceX had completed 18 Starlink missions this year, launching about 428 satellites. The active constellation now exceeds 9,700 satellites, including newer Direct-to-Cell units designed to connect directly to smartphones.
By reopening its premium tier in Nigeria’s commercial hubs, Starlink appears to be capitalising on sustained urban demand while managing network congestion through higher-priced offerings.
The Federal Airports Authority of Nigeria, in partnership with MTN Nigeria, has launched free WiFi services at the Murtala Muhammed International Airport Terminal 2 in Lagos and the Nnamdi Azikiwe International Airport in Abuja.
The launch of the internet service took place at MMIA Terminal 2 in Lagos on Thursday, and was launched by the Managing Director of FAAN, Olubunmi Kuku, who was represented by the Director of Airport Operations, Captain Abdullahi Mahmood. Also present was Lynda Saint-Nwafor, Chief Enterprise Business Officer of MTN Nigeria, who represented the Chief Executive Officer, Karl Toriola.
The wifi service, which is completely free for passengers and airport users, will be extended to the MMIA temporary terminal and other international airports across the country within the next three months.
In his address, Captain Mahmood described the launch as a milestone for FAAN and a benchmark for digital infrastructure and passenger experience at Nigerian airports. He noted that the partnership with MTN Nigeria demonstrates how effective Public-Private Partnership alignment can modernize infrastructure and strengthen Nigeria’s digital economy.
The Director of Airport Operations added that the initiative aligns with the Renewed Hope Agenda of Bola Tinubu and the transformation drive of the Minister of Aviation and Aerospace Development, Festus Keyamo.
In her remarks, Saint-Nwafor assured that the service would be reliable, secure, and efficient for all users. She commended the FAAN management team for its collaboration and foresight in ensuring the successful completion of the project.
MTN Group has reached an agreement to acquire IHS Towers in an all-cash transaction valuing the firm at approximately $6.2 billion, marking one of the largest telecom infrastructure deals involving an African operator.
The agreement follows weeks of negotiations between the companies that had been publicly reported earlier this month. Under the merger terms, IHS shareholders will receive $8.50 per ordinary share in cash, representing a 36% premium to its 52-week volume-weighted average price and about a 3% premium to its unaffected closing price of $8.23 on February 4, 2026.
Executive reactions
Chairman and CEO of IHS Towers, Sam Darwish, described the deal as a compelling opportunity for investors to realize value built over the company’s 25-year history.
He said the announcement provides certainty and immediate returns for shareholders and deepens the long-standing partnership between both firms, combining Africa’s largest mobile network operator with one of its biggest digital infrastructure platforms.
MTN’s Group President and CEO, Ralph Mupita, said the acquisition would strengthen MTN’s strategic and financial position as digital infrastructure becomes increasingly central to economic development across the continent.
According to him, the transaction offers MTN a unique chance to buy back its towers and strengthen its role as a development partner to countries where it operates, while maintaining high service standards for IHS customers.
Board and shareholder backing
IHS Towers’ board has unanimously approved the deal and recommended it to shareholders. MTN, which already owns roughly 24% of IHS on a fully diluted basis, has committed to vote its shares in favour of the transaction.
Long-term investor Wendel has also pledged support, bringing total committed backing to more than 40% of shareholders.
The cash consideration offers investors a defined exit following a strategic review launched amid geopolitical and macroeconomic volatility in key markets.
Background to the transaction
Earlier in the month, MTN confirmed in a cautionary notice that it was evaluating a potential buyout of minority shareholders of the New York Stock Exchange-listed IHS after market speculation.
The company warned that any deal could materially affect its share price and urged investors to exercise caution when trading its stock pending further announcements.
Financing structure and conditions
The transaction is expected to close in 2026, subject to shareholder and regulatory approvals and other customary conditions.
Funding will come from a combination of:
MTN’s existing stake rollover
About $1.1 billion in cash from MTN
Roughly $1.1 billion from IHS’s balance sheet
Rollover of existing IHS debt
IHS must also maintain a minimum cash balance of $355 million at closing. Completion partly depends on IHS successfully divesting its Latin American tower business and fibre operations, both announced in February 2026.
Financial advisory for IHS is being handled by J.P. Morgan, while legal counsel includes Latham & Watkins LLP and Walkers (Cayman) LLP.
On MTN’s side, advisers include BofA Securities and Citigroup Global Markets Limited, with legal advice from Cravath, Swaine & Moore LLP.
Company profile
Founded in 2001 with an initial focus on Nigeria, IHS Towers has grown into one of the world’s largest independent owners and operators of shared telecom infrastructure.
Headquartered in London and listed in New York since its 2021 IPO, the company manages more than 37,000 towers across seven African markets including South Africa, Cameroon, Côte d’Ivoire and Zambia as well as Latin American operations in Brazil and Colombia. MTN remains its largest customer.