The Nigerian Communications Commission (NCC) and the Central Bank of Nigeria (CBN) have commenced collaborative efforts to resolve the growing USSD debt crisis between telecom operators and commercial banks, which has reached a critical point.
Unstructured Supplementary Service Data (USSD) technology, a key feature in the Global System for Mobile Communications (GSM), underpins essential services like text messaging and financial transactions, including balance inquiries and fund transfers. However, the viability of these services is now under threat due to significant unpaid debts.
According to MTN Nigeria’s Chief Executive Officer, Karl Toriola, the debt issue could lead to banks being disconnected from USSD platforms. Speaking on the matter, Toriola warned:
“Mobile network operators (MNOs) may, pending regulatory approval, consider suspending USSD services for banking operations if the debt situation remains unresolved.”
The alarming situation has been underscored by the Executive Secretary of the Association of Licensed Telecommunication Operators of Nigeria (ALTON), Gbolahan Awonuga, who revealed that the debt owed by banks to telecom operators has ballooned to N250 billion.
The USSD cost-sharing crisis dates back to 2019 when telecom operators, facing unsustainable operating costs, proposed charging N4.50k for every 20 seconds of USSD usage. Banks resisted, claiming the charge would impose a 450% increase in transaction costs for consumers.
In response, the NCC, in partnership with the CBN, is seeking an amicable resolution. Speaking during a recent journalist training program on emerging trends in telecommunications, Dr. Ikechukwu Adinde, the NCC’s Director of Consumer Affairs Bureau, expressed optimism about reaching a solution:
“We are confident that both parties will come to an agreement that resolves this issue amicably and benefits all stakeholders.”
As part of broader industry reforms, the NCC is also set to enforce new measures promoting tariff transparency. Telecom operators will soon be required to provide consumers with detailed tariff tables, including billing rates and associated terms and conditions, ensuring greater clarity in service costs.
