NCC, CBN, Set to Resolve Telecos, Banks N250bn Data USSD Debt Impasse

The Nigerian Communications Commission (NCC) has engaged in talks with the Central Bank of Nigeria (CBN) over the Unstructured Supplementary Service Data (USSD) debt totalling N250 billion between the telecom operators and the commercial banks in the country.

USSD code is the quick or feature code in the global system for mobile communications GSM that facilitates a range of services, including text messaging and financial transactions such as cash transfers and balance inquiries.

Gentechnews had earlier reported that the CEO of MTN Nigeria, Karl Toriola, said that the telecos might be forced to disconnect the banks from the USSD platform if urgent steps were not taken to resolve the unpaid debts, which arose from the use of quick codes by their customers.

On his part, the Executive Secretary of the Association of Licensed Telecommunication Operators of Nigeria ALTON, Gbolahan Awonuga, also said that the debt burden has increased to N250 billion, which the ALTON members can no longer tolerate.

In 2019, telecommunications companies (telcos) announced that they may be unable to continue to provide USSD services for free, proposing to take a cut of N4.50k per 20 seconds from the charges paid by customers to banks, but the The banks objected to this proposal, insisting that it would result in a 450 per cent increase in costs.

However, Dr Ikechukwu Adinde, director of Consumer Affairs Bureau, NCC, disclosed at a recent training of journalists in Lagos that the commission was hopeful the issue would soon be settled, adding “The NCC remains committed to ensuring that the interests of all stakeholders—consumers, telcos, and banks—are protected.”

According to him, a resolution is critical to maintaining the seamless operation of mobile financial services that millions of Nigerians depend on daily.

Adinde, revealed that plans are on by the commission to introduce reforms at enhancing tariff transparency in the telecommunications industry, stressing that the new move between the NCC and the CBN would put the debt issue to rest.

Speaking on transparency and responsibility policy, Adinde said the changes, set to roll out in the coming months, will require telecom operators to provide consumers with clear, easily accessible tables outlining tariff plans, billing rates, and the terms and conditions associated with their services.