The Nigerian Communications Commission (NCC) is collaborating with the Central Bank of Nigeria (CBN) to resolve the mounting debt crisis over Unstructured Supplementary Service Data (USSD) services between telecommunications operators and Deposit Money Banks (DMBs).
USSD, commonly known as quick codes, is a GSM protocol enabling users to perform various mobile transactions, including fund transfers, balance checks, and bill payments. However, the long-standing dispute over payment for these services has reached a critical point.
MTN Nigeria’s Chief Executive Officer, Karl Toriola, warned in October that banks could face disconnection from the USSD platform due to unpaid debts. The Association of Licensed Telecommunication Operators of Nigeria (ALTON) further revealed that the debt has ballooned to N250 billion.
The root of the disagreement traces back to 2019 when telcos announced their inability to continue providing USSD services free of charge. They proposed deducting ₦4.50 per 20 seconds from the fees paid by customers to banks. The banks, however, resisted, arguing that this would increase costs by 450%, leaving the matter unresolved.
Faced with rising debts, telecom operators, including MTN, hinted at the possibility of discontinuing USSD services for banking operations, pending regulatory approval. Toriola described the situation as unsustainable for mobile network operators (MNOs).
In an effort to prevent disruptions, the NCC has stepped in to mediate. Dr. Ikechukwu Adinde, NCC’s Director of Consumer Affairs Bureau, disclosed during a training programme for journalists that discussions with the CBN are ongoing. Adinde expressed optimism that the matter would be resolved soon, ensuring continuity of the essential service.
The resolution of this dispute is critical for millions of Nigerians who rely on USSD for financial transactions, particularly in regions with limited access to internet-based banking services.
