Nigerian mobile telecommunications companies, namely MTN, Glo, Airtel, and 9mobile, have recently received approval from the Nigerian Communications Commission (NCC) to disconnect bank customers from Unstructured Supplementary Service Data (USSD) services.
This decision comes as a result of the banks’ failure to settle their debts, which have accumulated to a staggering N120 billion.
Join our WhatsApp ChannelIn a statement issued by the Association of Licensed Telecoms Operators of Nigeria (ALTON) and endorsed by Chairman Gbenga Adebayo, it was disclosed that prolonged disagreements have plagued the relationship between mobile network operators (MNOs) and deposit money banks (DMBs).
These disputes revolve around issues such as appropriate pricing models, transparent charges, collection methods, and liability for outstanding payments and service fees.
READ ALSO:First Watch ‘The Mother’ Review: A Star-Driven Thriller
The total outstanding fees owed to the MNOs currently exceed N120 billion. ALTON, representing the telecom operators, has confirmed that banks will face disconnection from USSD services if they fail to settle their debts.
Despite the collective efforts of stakeholders, including Minister of Communication and Digital Economy Prof. Isa Ali Pantami, the NCC, the Central Bank of Nigeria, MNOs, and DMBs, the banks have displayed an unwillingness to cooperate with the telecom operators in resolving the debt issue.
Furthermore, the DMBs have accumulated additional debt without showing any commitment to settling their previous obligations. Back in 2021, ALTON had planned to take action against DMBs for a debt of N42 billion.
However, Minister Pantami discouraged the MNOs from pursuing this course of action, citing potential negative consequences for the Federal Government’s Digital and Financial Inclusion policy.
READ ALSO:Traders Pay More For Forex As Dollar Rate Rises In Official, Black Markets
After discussions involving the NCC, ALTON, the Association of Telecommunications Companies of Nigeria, and the DMBs, a joint press statement was issued by the CBN and NCC, outlining the agreed-upon resolutions. Unfortunately, despite the Minister’s and NCC’s efforts, the DMBs have failed to sign a final agreement.
ALTON has emphasized that the contractual relationship between MNOs and DMBs concerning USSD services for banking transactions is a strictly commercial arrangement. This allows MNOs to withdraw services if they prove unprofitable.
Over the years, MNOs have made substantial investments in expanding their systems to cater to the USSD needs of DMBs, ensuring seamless access to banking services for Nigerians and enabling banks to reduce costs by operating fewer branches.
However, MNOs have yet to receive compensation for their services, and the debt has ballooned from N42 billion in 2021 to over N120 billion. ALTON has highlighted the excessive nature of the current debt, especially when considering the ongoing system upgrades and infrastructure required to support USSD transactions for DMBs.
As the telecom operators move forward with the disconnection process, the fate of USSD services for bank customers in Nigeria hangs in the balance, dependent on the resolution of the debt issue and the willingness of the banks to comply with their financial obligations to the MNOs.
Follow Us