NCC, CBN Resolve DMB’s N150bn USSD Debt Impasse with Telcos

The Nigerian Communications Commission (NCC) and the Central Bank of Nigeria (CBN), has finally resolved the Unstructured Supplementary Service Data (USSD) debt impasse between mobile telecom operators (MNOs) and Deposit Money Banks (DMBs).
The debt which is currently estimated to be about N150 billion accrued from the use of the USSD by customers of DMBs to make financial transactions.
The Executive Vice Chairman and CEO of the NCC, Prof Garba Danbatta, in his key note address at the Telecom Executives and Regulators Forum held at Oriental Hotel, Lekki, Lagos, revealed that the CBN, under the leadership of its acting governor, has ended the debt nightmare of the MNOs.
The forum with the theme: ‘Success Factors and Barriers to National Broadband and Digital Economy Aspirations’ was organized by the Association of Telecom Companies of Nigeria (ALTON).
Danbatta hinted that a meeting was convened with the MNOs, banks’ CEOs and other stakeholders with the CBN acting governor where the apex bank acknowledged the accumulated debt and harped on the need to pay up while charges for services would henceforth be paid for.
The EVC NCC maintained that customers should not be billed, rather, it should be corporate billing, adding that he hoped the agreement reached will be implemented to the letters by all the parties.
Danbatta declared the ICT sector’s contributions to the country’s gross domestic product (GDP) have reached 19.5 per cent and the telecom sector is 16 per cent, noting that the high percentage contribution of the ICT sector to the GDP makes the sector second only to the agric sector.
He explained that the Minister of Communications, Innovation and Digital Economy, Bosun Tijani, has acknowledged the high cost of doing business in the telecom sector, stressing that for the first time since the sector was liberalized, big operators posted losses while the fringe players are being seriously stifled.
He lamented that the trend does not make any business sense not to factor the cost of producing a product into the final price of the product.
Danbatta opined that a little hike in tariff within the range approved by the Commission will not be a bad idea.
He highlighted that barriers such as multiple taxation, high right of way (RoW) and others were still suffocating the industry, insisting that it would have done better had the barriers been tackled.
Taxes in the telecom sector, according to him, have risen from 41 to 46.
He lauded President Bola Tinubu for suspending the implementation of the five per cent excise duty imposed on the telecom sector by the previous administration and appealed to the President to cancel the tax in its entirety because it will increase the yoke on the neck of the telecom sector.
He expressed optimism on the attainment of 50 per cent broadband penetration this year in line with the target of the National Broadband Plan, adding “Our nation’s vast and diverse geography presents challenges in deploying broadband infrastructure, particularly in remote, rugged and swampy terrains. This presents a major obstacle to rolling out broadband infrastructure.
“The substantial upfront costs of building broadband infrastructure can be a barrier to investment, particularly in a country with economic disparities.
“Multiple regulation and bureaucracy can hinder investment and slow down deployment. Simplifying and streamlining regulations will provide the clarity and confidence needed to attract investments and foster competition.”
The EVC NCC also stated that the urban-rural digital divide is a major challenge to ensuring equitable access to the digital economy, stressing that bridging this divide requires targeted initiatives for underserved communities.
In his words: “A significant portion of Nigeria’s population lacks digital skills and awareness. This can limit the adoption and effective use of digital services.”
Speaking on security concerns as the nation advanced in the use of digital tools, Danbatta said: “As digital adoption increases, so does the risk of cyber-attacks and data breaches. Strengthening our cybersecurity measures will protect our citizens’ data, bolster consumer trust, and secure our digital infrastructure.”
He pointed out that frequent power outages and unreliable electricity infrastructure can disrupt digital services, noting that addressing this challenge will be key to maintaining uninterrupted connectivity.