- Telecom operators pushed for resolution as delays persist in debt repayment
- Nigerian Communications Commission (NCC) planned to suspend Unstructured Supplementary Service Data (USSD) services for 18 Nigerian banks over a combined N200bn debt
- Millions of bank customers who rely on USSD for transactions, particularly in rural areas, face potential disruption
The Nigerian Communications Commission (NCC) would publicly reveal the names of 18 banks this week for failing to settle their debts related to the use of Mobile Network Operators (MNOs) Unstructured Supplementary Service Data (USSD) platforms.
The service suspension, set to take effect in two weeks, is expected to disrupt millions of Nigerians who rely on USSD services for banking transactions, particularly those without internet access.
Banks face USSD suspension over N200bn debt
The banks owed a combined total of N200 billion, and the NCC is preparing to take action, including suspending USSD access for the defaulters.
Undisclosed industry sources revealed to The PUNCH on Monday, January 13 that only four banks have met the payment requirements outlined in a joint directive from the Central Bank of Nigeria (CBN) and the NCC issued in December 2023.
The directive mandated that 60 per cent of pre-API (Application Programming Interface) invoices be paid by January 2, 2025, with payment plans negotiated between the banks and telecom operators. However, most banks have not yet met these obligations.
Adebayo urges regulatory action as banks default
Recall that in November, Gbenga Adebayo, Chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON), stated that while smaller banks had begun making payments, larger banks responsible for the majority of the debt had not made significant progress.
Adebayo also noted that telecom operators were now awaiting intervention from the Central Bank of Nigeria (CBN) and NCC to address the issue.
“We are seeing payments from smaller players, but the big banks, which owe the most, have not been forthcoming,” Adebayo stated.
He further said, “We are now waiting for intervention from regulators, including the CBN and NCC, to resolve the issue.”
Expert warns of banking disruption
Telecom industry expert Ejike Onyeaso, Director at Adaba Consult, had earlier said that telecom companies were frustrated with the banks over insufficient payments for leased lines used to provide USSD services.
He warned that if telecom operators followed through on threats to suspend services, it could severely impact banking operations.
The unpaid pre-API invoices refer to charges for USSD services incurred before the introduction of APIs in February 2022, when USSD transactions were often handled using outdated or less standardised methods, leading to disputes over billing and payments.
The NCC's decision to expose the defaulters was part of its efforts to resolve the long-standing debt dispute between banks and telecom companies, which has been a contentious issue for years.
NCC approves disconnection of Exchange Telecoms from MTN Nigeria over unpaid charges
Meanwhile, TheRadar earlier reported that the Nigerian Communications Commission (NCC) sanctioned the disconnection of Exchange Telecoms from MTN Nigeria due to unpaid interconnect charges.
According to the report, Exchange Telecoms failed to provide satisfactory explanations for its inability to pay the charges.