The Nigerian Communications Commission (NCC) and the Central Bank of Nigeria (CBN) have teamed up to resolve a mounting N250 billion debt owed by Nigerian banks to telecom operators for the use of Unstructured Supplementary Service Data (USSD) services. USSD, commonly used for mobile banking activities such as money transfers, balance checks, and bill payments, has become a vital tool for Nigerians. However, telecom companies have claimed that banks have failed to settle their dues for these services, creating a financial rift. In response, the NCC and CBN are working together to find a solution to the dispute, which has put a strain on the relationship between the banking and telecom sectors.
How the N250 Billion USSD Debt Between Nigerian Banks and Telecoms Came to Be👇👇👇
In October, MTN Nigeria’s CEO, Karl Toriola, issued a stark warning that telecom companies might halt USSD services to banks due to an escalating N250 billion debt. Gbolahan Awonuga, Executive Secretary of the Association of Licensed Telecommunication Operators of Nigeria (ALTON), confirmed the growing financial strain. This issue has its roots in 2019, when telecom operators, unable to continue offering USSD services for free, proposed a N4.50 per 20-second charge to be deducted from banks’ customer fees. However, banks opposed the proposal, arguing that it would result in a 450% increase in transaction costs, escalating tensions between the two sectors.
Karl Toriola, CEO of MTN Nigeria, has warned that telecom operators may be forced to suspend USSD services for banking transactions if the N250 billion debt remains unresolved. However, he noted that such a move would require approval from regulatory bodies, signaling a potential standoff between the telecom and banking sectors unless the issue is addressed promptly.
The Nigerian Communications Commission (NCC) is collaborating with the Central Bank of Nigeria (CBN) to find a resolution to the ongoing N250 billion USSD debt issue, which involves banks, telecom operators, and consumers. Dr. Ikechukwu Adinde, Director of the NCC’s Consumer Affairs Bureau, expressed optimism during a recent training session for journalists on telecom industry trends. He emphasized the commission’s commitment to safeguarding the interests of all stakeholders, highlighting that resolving the debt is essential for ensuring the continued smooth operation of mobile financial services that millions of Nigerians rely on daily.
Enhancing Consumer Transparency: NCC’s New Focus for Telecom Users in Nigeria
Dr. Ikechukwu Adinde revealed that the NCC is set to introduce new regulations aimed at enhancing transparency in telecom tariffs. Starting in the coming months, telecom operators will be required to clearly display their tariff plans, billing rates, and the terms and conditions of their services, ensuring consumers can make more informed decisions. This initiative is part of the NCC’s broader effort to protect and empower telecom users across Nigeria.
In conclusion however, The NCC is confident that its new transparency measures, coupled with its collaboration with the CBN, will not only resolve the USSD debt issue but also foster a more open and accountable telecommunications industry in Nigeria. These changes aim to ensure clearer pricing and better consumer protection, ultimately benefiting Nigerians who rely on mobile services daily.
