The Nigerian Communications Commission (NCC) has ordered telecommunication companies in Nigeria to withdraw USSD services from banks over an owed debt of N120 billion.
Reports reveal that the approval was granted because, despite multiparty stakeholder efforts to resolve the situation and prevent any impact on banking services, the DMBs have continued to incur higher debts, without making the commensurate payments.
The Association of Licensed Telecommunications Operators of Nigeria (ALTON) while addressing the issue disclosed that every time little progress is made, the Deposit Money Banks (DMBs) always come up with reasons to take stakeholders several steps in the matter.
Also, the telecoms companies lamented that banks have been reluctant in paying their obligations, while they have not issued any credible explanation for the rising debt.
Investors King understands that Nigeria’s minister of communication and Digital Economy, Prof. Isa Pantami has intervened and asked the MNOs not to disconnect Deposit Money Banks, noting that the action will have a negative impact on the digital and financial inclusion policy of the Federal Government.
It is worth noting that this is not the first time that the telcos have threatened to withdraw their USSD services from banks. Deposit money banks and telecom operators have been at loggerheads since 2019, over the non-remittance of USSD fees.
In 2019, the money owed was N32 billion, in March 2021, it increased to N42 billion. Also, in December 2022, it rose to N80 billion as the Telcos threatened to disconnect Banks’ subscribers as the debt continued to rise.
One critical implication of the withdrawal of USSD services from banks is that millions of customers who make use of the service would either experience unbearable service or no service at all, which would affect Nigeria’s financial inclusion. USSD services ensure that many Nigerians can access banking services on their phones with smartphone penetration still quite low in the country. It serves as a bridge to financial inclusion for many underserved Nigerians.