In line with its mandate of maintaining decorum and industrial harmony in the nation’s telecoms sector, the Nigerian Communications Commission (NCC) has initiated discussions with the Central Bank of Nigeria (CBN) to resolve the protracted Unstructured Supplementary Service Data (USSD) debt crisis, which now stands at an alarming N250 billion.
The debt, owed by commercial banks to telecommunications operators, threatens the sustainability of a crucial financial service platform used for seamless banking transactions such as transfers, balance inquiries, and bill payments.
A Growing Crisis
The USSD platform, widely relied upon by millions of Nigerians for quick and efficient mobile transactions, has become a flashpoint between banks and telecom operators.
Only recently, MTN Nigeria’s Chief Executive Officer, Karl Toriola, warned that telcos might be forced to disconnect banks from the platform due to the staggering debts. This sentiment was echoed by Gbolahan Awonuga, Executive Secretary of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), who confirmed the N250 billion debt escalation.
The dispute dates back to 2019 when telcos proposed charging N4.50 per 20 seconds of USSD usage. This was to cover operational costs after years of providing the service for free. Banks resisted the proposal, citing concerns about a 450% increase in transaction costs. Since then, the debt burden has grown significantly, straining relations between the two industries.
NCC Steps In for Resolution
In response, the NCC has stepped up efforts to mediate between the parties. Dr. Ikechukwu Adinde, Director of the NCC’s Consumer Affairs Bureau, revealed during a recent training for journalists on telecom trends that the Commission is optimistic about reaching an amicable settlement through its ongoing engagement with the CBN.
“The NCC remains committed to ensuring that the interests of all stakeholders—consumers, telcos, and banks—are protected,” Adinde stated. He emphasized that a resolution is critical to maintaining the seamless operation of mobile financial services that millions of Nigerians depend on daily.
However, in a swift response to calm frayed nerves, the NCC has announced plans to introduce reforms aimed at enhancing tariff transparency in the telecommunications sector. These reforms will compel telecom operators to provide easily accessible, detailed tables outlining tariff plans, billing rates, and associated terms and conditions. The initiative seeks to empower consumers with clear information, fostering trust and accountability in the industry.
The resolution of the USSD debt crisis is critical for the future of mobile banking and financial inclusion in Nigeria. With telcos threatening service suspension and banks unwilling to shoulder additional costs, the NCC’s mediation with the CBN is seen as a timely intervention to avert a service disruption that could impact millions of Nigerians and the broader economy.
Stakeholders await the outcome of the negotiations, which could set a precedent for addressing similar industrial issues going forward.
