Banks Owing Telcos
The Nigerian Communications Commission (NCC) will this week disclose the names of 18 banks that have failed to clear outstanding debts related to the use of Mobile Network Operators’ Unstructured Supplementary Service Data (USSD) platforms.
These banks collectively owe N200bn, prompting the telecom regulator to prepare actions, including suspending USSD services for the defaulters.
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EKO HOT BLOG reports that Sources told The PUNCH on Monday that only four banks have met the payment requirements outlined in a joint directive by the Central Bank of Nigeria (CBN) and the NCC in December 2023. The directive mandated the settlement of 60 per cent of pre-API (Application Programming Interfaces) invoices by January 2, 2025, with agreed payment plans between the banks and MNOs.
Pre-API invoices are debts for USSD services incurred before APIs were introduced in February 2022. Before API implementation, USSD transactions relied on older systems that often caused billing and reconciliation disputes between banks and telcos.
The planned service suspension, expected within two weeks, could significantly disrupt Nigerians who depend on USSD services for banking, especially those without internet access.
The upcoming NCC statement will guide subscribers on switching to other banks to ensure uninterrupted access to banking services. This disclosure is part of NCC’s broader effort to resolve the protracted debt dispute between banks and telecom companies.
Telecom operators have raised concerns about the impact of the unpaid debt on the sustainability of USSD services and have threatened withdrawal. Between January and June 2024, USSD facilitated 252.06 million transactions worth N2.19tn, a sharp increase from 2023’s N4.84tn over 630.6 million transactions.
The service, initially designed for airtime and subscriptions, has become integral to banking due to its offline functionality.
In November, Gbenga Adebayo, Chairman of the Association of Licensed Telecom Operators of Nigeria, reported progress with smaller banks repaying their debts but noted that tier-one lenders, responsible for the bulk of the debt, remain non-compliant.
“We are seeing payments from smaller players, but the big banks, which owe the most, have not been forthcoming,” Adebayo said, urging regulators like the CBN and NCC to intervene.
Banks Owing Telcos
In October, telecom expert Ejike Onyeaso criticized banks for inadequate payments for leased lines used for USSD. He warned that service suspension by telecoms could disrupt banking operations.
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