In a proactive move to address the escalating USSD debt crisis affecting telecom operators and commercial banks in Nigeria, the Nigerian Communications Commission (NCC) has initiated discussions with the Central Bank of Nigeria (CBN).
USSD, commonly referred to as quick or feature codes, is a vital protocol 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.
Recently, MTN Nigeria’s Chief Executive Officer, Karl Toriola, raised concerns that banks could face disconnection from the USSD platform due to mounting debts incurred from customer usage of these quick codes. The situation has become increasingly dire, with the executive secretary of the Association of Licensed Telecommunication Operators of Nigeria (ALTON), Gbolahan Awonuga, reporting that the total debt has surged to a staggering N250 billion.
Back in 2019, telecom operators indicated they could no longer sustain the provision of USSD services for free and proposed a fee of N4.50k for every 20 seconds of usage charged to customers by banks. However, this proposal was met with resistance from banks, who argued that it would lead to a 450 percent increase in costs.
Toriola has warned that mobile network operators (MNOs) may, pending regulatory approval, consider suspending USSD services for banking operations if the debt situation remains unresolved.
In light of these developments, the NCC is optimistic about reaching an amicable resolution with the CBN. Dr. Ikechukwu Adinde, the NCC’s Director of Consumer Affairs Bureau, shared this update during a recent training program for journalists focused on emerging trends in the telecommunications sector. He expressed confidence that a solution would be forthcoming.
Additionally, the NCC is set to introduce reforms aimed at improving tariff transparency within the telecommunications industry. These upcoming changes will mandate telecom operators to present consumers with clear and accessible tariff tables, detailing billing rates and the terms and conditions of their services.
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