Joy Agwunobi
The Nigerian Communications Commission (NCC) is in talks with the Central Bank of Nigeria (CBN) over the Unstructured Supplementary Service Data (USSD) debt totalling N250 billion which banks owe telecoms operators.
USSD, also 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, among others.
Recall that the Chief Executive Officer (CEO) of MTN Nigeria, Karl Toriola, had in October said banks might be disconnected from the USSD platform due to debt arising from the use of the quick codes by their customers.
Also, the Executive Secretary of Association of Licensed Telecommunication Operators of Nigeria (ALTON), Gbolahan Awonuga, had in October revealed that the debt had increased to N250 billion.
In 2019, telcos said they could no longer provide the services for free and proposed to take a cut of N4.50k per 20 seconds from the charges paid by customers to the banks.
However, banks kicked against it, alleging that it would raise costs by 450 per cent.
Toriola had said mobile network operators (MNOs) might, subject to regulatory approval, suspend supporting the 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.
However, the NCC said it is engaging with the CBN to settle the issue amicably.
NCC’s Director of Consumer Affairs Bureau, Dr Ikechukwu Adinde, who disclosed this during a training programme for journalists on emerging trends in the telecoms sector, said it was hopeful that the issue would soon be settled.
“The NCC remains committed to ensuring that the interests of all stakeholders—consumers, telcos, and banks—are protected,” he said.
Adinde insisted that a resolution is critical to maintaining the seamless operation of mobile financial services that millions of Nigerians depend on daily.
The director, who also said plans are on to introduce reforms at enhancing tariff transparency in the telecommunications industry, said the new move between the NCC and CBN would finally put an end to the debt issue.
On transparency and responsibility policy, Adinde said the changes, set to roll out in the coming months, will require telecoms operators to provide consumers with clear, easily accessible tables outlining tariff plans, billing rates, and the terms and conditions associated with their services.
