USSD Services: Nigerian banks debt to telcos hit N42bn

Commercial banks operating in the country are owing mobile network operators a total sum of N42bllion for Unstructured Supplementary Service Data (USSD) services provided to them, the Nigerian Communications Commission has revealed.

Speaking at the 2021 Bullion Lecture held in Lagos recently, the Executive Vice Chairman, NCC, ⁿProf. Umar Danbatta, who made the disclosure said the current debt by the banks represents a 147 per cent increase in debt from N17 billion debt reported last year October.

Danbatta explained that the indebtedness of the banks to mobile network operators had been causing concern, adding that the NCC was working hard to resolve it.

Danbatta said, “The issue of the USSD has become an issue between the telcos and the banks. The telecommunication companies provide the infrastructure which the banks leverage to provide banking services of all kinds.

“Therefore, it is expected that for this service someone should pay. No service is free. The investment in infrastructure that is driving the USSD service is a huge investment that the telcos made.”

The NCC boss added, “It is expected that they (telcos) will recoup their investments to continue and to expand the service. About N42bllion that is owed the telcos have not been paid by the banks for the provision of this service.”

Danbatta said the telecommunications firms could not withdraw their services to the banks because such action would not go down well with the Federal Government.

He said, “The telecommunications companies cannot unilaterally withdraw this service because it will be seen as a subversive act, undermining the digital inclusion strategy of the present government.

“And no government will sit back and watch while services that empower citizens are being tampered with or withdrawn. No government will standby and watch this to happen.”