NCC, CBN working to resolve telecoms, banks’ USSD debt issue

In a bid to resolve the telecommunications and Banks’ USSD debt issue, the Nigerian Communications Commission, NCC, and the Central Bank of Nigeria, CBN are currently discussing over the Unstructured Supplementary Service Data (USSD) debt totalling N250 billion between the telecom operators and the commercial banks in the country.

This followed the long standing crisis between the companies and banks which dated back to 2019 when telecos proposed charging N4.50 per 20 seconds of USSD usage in order to cover operational costs after years of providing the service for free.

USSD, known as quick or feature codes, is a global system for mobile communications (GSM) protocol used to send text messages and initiate financial transactions such as cash transfers, balance inquiries, payments for services and others.

However, the USSD platform, which is widely relied upon by millions of Nigerians for quick and efficient mobile transactions, has become a point of disagreement between the banks and telecom operators.

But the banks kicked against this, saying a 450% increase in transaction costs will significantly grow the debt and strain relations between the two vital industries.

Amid the ongoing impasse, the Director of Consumer Affairs Bureau, Dr. Ikechukwu Adinde, expressed optimism that the issue would be resolved amicably as soon as possible.

Adinde said, the Commission has unwavering determination to resolve the issue in the interest of the nation, the industry and other stakeholders, adding that the resolution was critical to peaceful operation of mobile financial services to millions of Nigerians.

According to him, “The NCC remains committed to ensuring that the interests of all stakeholders—consumers, telcos, and banks—are protected.”

Akinde, who also said plans are on to introduce reforms at enhancing tariff transparency in the telecommunications industry, believed the new move between the NCC and the CBN would put the debt issue finally to rest.

On transparency and responsibility policy, Adinde said the changes, set to roll out in the coming months, will require telecom operators to provide consumers with clear, easily accessible tables outlining tariff plans, billing rates, and the terms and conditions associated with their services.

Indeed, Chief Executive Officer (CEO) of MTN Nigeria, Karl Toriola had said in October that banks might be disconnected from the USSD platform due to debt arising from the use of the quick codes by their customers.

Toriola had said mobile network operators (MNOs) might, subject to regulatory approval, suspend use of the service on the network for banking operations, as the debt had continued to pile up and was becoming unsustainable to the operators.

Also, the executive secretary of the Association of Licensed Telecommunication Operators of Nigeria (ALTON), Gbolahan Awonuga, said in October that the debt between telecoms operators and commercial had hit N250billion.

Earlier, the telcos had lamented that they could no longer provide the services free, proposing a cut of N4.50k per 20 seconds from the charges paid by customers to the banks.