Banks Avoid USSD Service Disruption by Settling N160bn Debt
In a move to prevent a potential disruption of Unstructured Supplementary Service Data (USSD) services, Nigerian banks have made significant progress in repaying their outstanding debts. The banks had accumulated a N160bn debt since 2019, but have now settled a substantial portion of the amount.
The Nigerian Communications Commission (NCC) had warned that nine banks would be disconnected from USSD services if they failed to clear their debts by January 27. However, the banks acted quickly to resolve the issue, averting service disruptions.
The Chairman of the Association of Licensed Telecommunications Operators of Nigeria, Gbenga Adebayo, confirmed that the matter had been de-escalated. “The matter has been de-escalated. Money has been paid, and we are making progress thanks to the regulators,” he said.
The nine banks that were at risk of disconnection include Fidelity Bank Plc, First City Monument Bank, Jaiz Bank Plc, Polaris Bank Limited, Sterling Bank Limited, United Bank for Africa Plc, Unity Bank Plc, Wema Bank Plc, and Zenith Bank Plc.
The dispute began in 2019 when banks started incurring charges for using USSD services provided by telecom companies. However, many banks struggled to settle the charges, causing the debt to accumulate.
The settlement is part of a structured payment plan outlined by the NCC and the Central Bank of Nigeria. The plan requires banks to settle their debts in three phases, with specific deadlines for each phase.
The successful settlement of the debt averts a potential disruption of USSD services, which would have impacted millions of users. The resolution also demonstrates the effectiveness of collaboration between regulators and stakeholders in resolving disputes and promoting a stable telecommunications industry.