Telcos Set to Suspend 18 Banks’ USSD Services Over N200bn Debt

By Prosper Mene

Telecommunication companies in Nigeria are poised to suspend USSD services for 18 banks due to an outstanding debt of N200 billion. This action comes after directives from both the Nigerian Communications Commission (NCC) and the Central Bank of Nigeria (CBN), which had previously ordered banks to settle significant portions of their USSD debt accrued since 2019. However, only four banks have complied with this directive, leaving the rest in non-compliance.

The NCC has now authorized telecom operators to potentially withdraw services from these banks if they do not clear their debts within two weeks. This issue of USSD debt has been a contentious one, with the debt growing from less than N40 billion in 2020 to N57 billion by the end of 2021, N80 billion in 2022, and now exceeding N250 billion as claimed by the telecom companies. They accuse banks of not adhering to the agreed repayment plans.

The NCC and CBN had set a deadline of December 31, 2024, for banks to pay a portion of the debt, with the remainder to be settled gradually. Despite this, the banks have been criticized by Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), for deliberately obstructing resolution efforts. He has indicated that without compliance, the telcos might have no choice but to cut off the USSD services that facilitate ‘bank transfers’ via shortcodes on mobile phones.

If this blacklist goes into effect, consumers might no longer be able to utilize these shortcode services for online banking, potentially affecting millions of bank users’ ability to perform transactions from home

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