TelCos frustrated, as Banks USSD debt rises to N200bn
…Operators threaten to block debtor banks, withdraw services
Telecommunications companies under the aegis of the Association of Licensed Telecommunications Operators of Nigeria (ALTON) have expresssed frustration over the inability of the operators to recover their debts from Nigerian banks utilising their services.
Earlier, in an attempt to wade in the tussle between the Banks and the telecommunications operators, former Minister of Communications and Digital Economy, Professor Isa Ali Pantami had called for a meeting on March 15, 2021 with the representatives of the mobile network operators (MNOs) and the banks where they came up with resolutions, which included that the banks should charge a flat fee of N6.98k per transaction on USSD and the banks should continue to collect on behalf of MNOs directly from customers’ bank accounts.
However, the former Minister’s intervention failed to yield results as the debt has continued to grow astronomically ever since.
Recall that the accumulated debt from Unstructured Supplementary Service Data which Deposit Money Banks owe telecommunication firms had risen to over N100 billion in September.
Now at N200 billion, the operators have expressed frustration and are demanding the banks pay up their debts in full.
The former EVC of the NCC, Prof Umar Danbatta before his exit from the commission had confirmed that following 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 paying the accumulated debt and continue to pay for the USSD service going forward under the corporate billing term.
However, going by the recent complaints by the operators, it appears the Banks are yet to fulfill their promise to pay their debts.
ALTON Chairman, Gbenga Adebayo speaking during a stakeholders meeting with the Executive Vice Chairman of Nigerian Communications Commission (NCC), Dr. Aminu Maida in Lagos said that the operators would not hesitate blocking debtor banks from accessing the service.
Adebayo said despite all appeals, meetings and interventions by CBN and NCC, the banks have kept mute over payment.
The ALTON boss said the value of the debt would keep rising based on the fluctuating foreign exchange challenges in the country.
USSD (Unstructured Supplementary Service Data) is a Global System for Mobile Communications (GSM) protocol that is used to send text messages. Unlike banking apps that require internet access and smartphone functionality, USSD banking can work on any mobile device. This has largely contributed to the growth in Nigeria’s financial inclusion drive.
