Nigerian telecommunications companies under the umbrella of the Association of Licensed Telecommunications Operators of Nigeria (ALTON) have expressed growing discontent over the reluctance of banks to settle their mounting debts incurred through the use of their services.
In an earlier attempt to resolve the dispute between banks and telecom operators, former Minister of Communications and Digital Economy, Professor Isa Ali Pantami, convened a meeting on March 15, 2021, with representatives of mobile network operators (MNOs) and banks. The meeting resulted in resolutions that included a flat fee of ₦6.98k per transaction for USSD services and the continuation of direct customer billing by banks on behalf of MNOs.
Unfortunately, the former Minister’s intervention has failed to yield tangible results, as the debt has continued to spiral out of control. The accumulated debt from Unstructured Supplementary Service Data (USSD) owed by Deposit Money Banks to telecommunication firms has surpassed a staggering ₦200 billion.
Exasperated by the banks’ inaction, the operators have demanded full repayment of their debts. The former Executive Vice Chairman of the Nigerian Communications Commission (NCC), Professor Umar Danbatta, had previously confirmed that following a series of meetings between NCC, telecoms operators, the banks, and the acting governor of the Central Bank of Nigeria (CBN), Folashodun Shonubi, a consensus was reached for the banks to commence payment of the accumulated debt and continue paying for the USSD service under the corporate billing term.
However, the recent complaints by the operators suggest that the banks have yet to honour their commitment to settling their debts. ALTON Chairman, Gbenga Adebayo, who spoke during stakeholders meeting with the Executive Vice Chairman of NCC, Dr. Aminu Maida in Lagos, warned that the operators would not hesitate to block debtor banks from accessing the service if the situation remains unresolved.
Adebayo expressed frustration over the banks’ silence on the matter despite repeated appeals, meetings, and interventions by CBN and NCC. He emphasized that the value of the debt continues to rise due to the fluctuating foreign exchange challenges in the country.
USSD (Unstructured Supplementary Service Data) is a Global System for Mobile Communications (GSM) protocol that enables text messaging. Unlike banking apps, which require internet access and smartphone functionality, USSD banking can operate on any mobile device. This has played a crucial role in advancing Nigeria’s financial inclusion drive.
