Banks’ N250bn USSD debt: Telcos demand urgent regulatory intervention

The lingering N250bn debt owed by Nigerian banks to telecom operators for Unstructured Supplementary Service Data (USSD) services has reached a critical point, with telecommunications stakeholders warning of dire consequences for financial inclusion efforts if swift action is not taken.

The President of the Association of Telecommunications Companies of Nigeria (ATCON), Tony Emoekpere, emphasized the urgent need for regulators to implement practical measures to resolve the issue. According to Emoekpere, the unresolved debt threatens to derail financial inclusion progress, especially in rural communities where USSD services bridge the digital divide.

USSD technology plays a crucial role in Nigeria’s financial ecosystem, enabling mobile banking, airtime top-ups, bill payments, and other essential transactions. However, the growing debt burden has placed telecom operators in a precarious position, raising concerns about their capacity to sustain these services.

“My advice is that it is crucial for this debt to be addressed directly and for a solution to be found. If telcos are not encouraged to support the financial industry and such debts continue to accumulate, it will be detrimental to financial inclusion targets,” Emoekpere warned. He also urged regulators like the Nigerian Communications Commission (NCC) and the Central Bank of Nigeria (CBN) to prioritize USSD traffic and introduce incentives for operators.

The debt issue has been a persistent challenge, with telecom operators threatening to suspend USSD services due to non-payment. While smaller banks have begun making partial repayments, larger financial institutions responsible for the majority of the debt are reportedly lagging.

Gbenga Adebayo, Chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON), revealed that some repayments have been made but are insufficient to address the problem. “Some repayments have been recorded, but they fall short of expectations,” Adebayo said.

Telecom operators argue that the unpaid debts not only undermine their operations but also jeopardize the sustainability of USSD services, which are vital for millions of Nigerians without internet access or smartphones.

Industry experts caution that failure to resolve the issue could disrupt the nation’s financial inclusion drive, leaving rural communities disproportionately affected. They are calling for a comprehensive framework to address the crisis, ensuring equitable and timely payments by banks while safeguarding telecom operators’ interests.

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