The Nigerian Communications Commission (NCC) has announced plans to name 18 banks that have failed to settle their collective N200 billion debt for using Mobile Network Operators’ (MNOs) Unstructured Supplementary Service Data (USSD) platforms.
The announcement, expected this week, is part of measures to address the long-standing payment dispute between banks and telecom operators.
According to industry sources, only four banks have complied with the December 2023 directive jointly issued by the Central Bank of Nigeria (CBN) and the NCC. The directive mandated banks to pay 60% of pre-API (Application Programming Interfaces) invoices by January 2, 2025, and agree on payment plans for the balance with MNOs.
Impact of Pre-API Debt
Pre-API debts refer to unpaid USSD service charges accrued before the implementation of APIs in February 2022. These older methods of managing USSD transactions often led to billing and reconciliation disputes, further compounding the debt issue.
The NCC plans to suspend USSD services for defaulting banks within two weeks if payments are not made. This move could significantly disrupt banking transactions for millions of Nigerians, particularly those without internet access. To mitigate the impact, the NCC will provide directives for affected subscribers to transition to other banks.
Telecom Operators Raise Concerns
Telecom operators have expressed concerns over the sustainability of USSD services due to the unpaid debts. Despite their critical role in enabling financial inclusion and driving economic activity, MNOs have refrained from suspending services to avoid widespread disruption.
Electronic payment data from the CBN shows that USSD transactions are a vital component of Nigeria’s financial ecosystem. Between January and June 2024, Nigerians conducted 252.06 million USSD transactions, valued at N2.19 trillion. This is a marked increase compared to the N4.84 trillion recorded for 630.6 million transactions in the entire year of 2023.
Call for Regulatory Intervention
The Chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON), Gbenga Adebayo, noted progress in repayments by smaller banks but highlighted the reluctance of tier-one lenders to meet their obligations. “We are seeing payments from smaller players, but the big banks, which owe the most, have not been forthcoming,” Adebayo said.
Experts like Ejike Onyeaso, a director at Adaba Consult, have criticised banks for underpaying telecom firms despite generating significant revenue from USSD services. He warned that suspending USSD operations could disrupt banking services nationwide.
The NCC’s decision to publicly name defaulters is seen as a critical step toward resolving the impasse, ensuring sustainability for USSD services and safeguarding millions of Nigerians reliant on these platforms.
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