Governor of the Central Bank of Nigeria Godwin Emefiele has called on telecommunication companies and Deposit Money Banks (DMBs) operating in the country, to resolve their ongoing dispute to protect consumers’ interests.
Emefiele while speaking at an event in Abuja, disclosed that if the issue between telcos and DMBs is not resolved, customers will suffer unpleasant banking services
He further disclosed that the CBN was on top of the issue to broker peace between both parties to ensure that their dispute is resolved amicably, and to prevent consumers from bearing the brunt of the consequences.
He said that he strongly believes both parties will come to an agreement through the instrumentality of the Bank.
Recall that telecommunications companies and Deposit Money Banks (DMBs) in the country have been at loggerheads since 2019 over unpaid USSD debt which has now risen to N120 billion Naira.
Telecom Operators, under the platform of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), three days ago warned that they have endured beyond limits the lingering Unstructured Supplementary Service Data (USSD) debt owed them by banks, noting that they were prepared to disconnect all bank customers currently using the platform.
This saw the Nigerian Communications Commission (NCC) order telcos in the country to withdraw their USSD services from banks. Reports reveal that the approval was granted because, despite different stakeholders’ efforts to resolve the issue, DMBs have continued to incur higher debts, without making commensurate payments.
Investors King understands the USSD feature was brought into Nigeria’s financial inclusion plan to cater to the underbanked, which has remained a great enabler for vulnerable people in different areas of the country. Notably, the USSD feature, which is similar to Short Message Service (SMS), has become a popular way in which Nigerians make banking transactions.
Hence, if the lingering dispute between telcos and DMBs are not resolved, it is not far-fetched to say that it will negatively impact Nigeria’s financial inclusion design.