The Nigerian Communications Commission (NCC) and the Central Bank of Nigeria (CBN) are intensifying efforts to resolve the lingering N250 billion debt owed by banks to telecom operators for Unstructured Supplementary Service Data (USSD) services.
USSD, a critical tool for mobile banking activities such as fund transfers, balance checks, and bill payments, has become indispensable to millions of Nigerians. However, telecom operators have raised concerns over unpaid charges, threatening to disrupt the seamless operation of these services.
In October, MTN Nigeria’s CEO, Karl Toriola, cautioned that telecom operators might suspend USSD services to banks if the debt remained unresolved. Similarly, Gbolahan Awonuga, Executive Secretary of the Association of Licensed Telecommunication Operators of Nigeria (ALTON), highlighted the strain this dispute has placed on the telecom sector.
The conflict dates back to 2019, when telecom operators proposed a N4.50 per 20-second charge to cover USSD service costs, which were initially offered for free. Banks opposed the proposal, citing concerns that it would significantly increase transaction fees, creating a deadlock. The result has been a mounting debt that now threatens the stability of USSD services.
Despite the escalating tensions, regulatory bodies, including the NCC and CBN, are working to mediate the dispute. NCC’s Director of Consumer Affairs, Dr. Ikechukwu Adinde, expressed optimism during a recent media engagement, reaffirming the commission’s commitment to protecting the interests of all stakeholders.
To address the issue, the NCC has introduced transparency measures aimed at fostering accountability in the telecommunications industry. These measures, combined with the NCC-CBN collaboration, are expected to resolve the debt impasse and ensure the sustainability of mobile financial services.
The resolution of this issue is critical not only to the telecom and banking sectors but also to millions of Nigerians who depend on USSD for their daily financial transactions. Stakeholders are hopeful that a timely and amicable solution will restore stability to this vital service.
