'Avoid service shut down' - MTN, Airtel, others drag Nigerian banks over N200bn USSD debt

The Association of Licensed Telecommunications Operators of Nigeria (ALTON) has insisted that Nigerian banks pay the debt they owe for Unstructured Supplementary Service Data (USSD) transactions or risk the possible shutdown of the service.

They said this on Thursday, November 16, 2023, at the Nigerian Communications Commission industry interactive session with the new Executive Vice Chairman/Chief Executive Officer of the commission, Dr Aminu Maida.

Debt continues to increase

The amount owed is now estimated at N200 billion from the N120 billion it was earlier in the year. Some months ago, Legit.ng reported that the amount was N150 billion.

Both sectors have been in disagreement since the USSD debt repayment in 2019. By 2020, the debt was just N17 billion but has since risen astronomically.

Gbenga Adebayo, ALTON Chairman, said the banks have since kept mute, but the debt has hindered progress for the telecom sector. Confirming that there has been an ongoing conversation on the issue, Adebayo said: “Of course, we can confirm that there had been talks, largely before now, but no progress has been made. The matter needs to be resolved as fast as possible to avoid service shut down.”

“If operators had to shut down their services, bank customers would no longer be able to carry out transactions such as fund transfer through shortcodes, check bank details and account balances among others through their mobile phones."

The chairman also noted that the debt would continue to rise due to the forex challenge.

The bank's chief information officer who spoke to The Guardian assured that the matter would be resolved. He also called for the need to act on time.

“This is becoming ridiculous, we just hear figures upon figures. I remember the last discussion I had on this matter, the figure peddled then was N120 billion in April or May, now, you people are just brandishing figures here and there, now it has climbed to N200 billion. I think it is high time the banks and telcos resolved this matter. It is becoming embarrassing.”

Segun Agbaje, the Chief Executive Officer of Guaranty Trust Holding Company Plc, had earlier argued that reducing the cost of data was the only way to actualise financial inclusion. He described the USSD as a clumsy technology.