Good News as Banks Begin Repaying MTN, Airtel, Others for N250 Billion Debt
- Nigerian telecom companies are making some progress on paying back the N250 billion USSD debt they are owing banks
- However, most of the tier-one lenders of the loan have yet to make any significant payments
- Chairman of ALTON underlined that cooperation between the CBN and NCC is necessary for telecoms sectors
Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
With smaller banks starting to pay their debts, telecom providers in Nigeria are making some headway in repaying the N250 billion debt associated with Unstructured Supplementary Service Data offerings.
Source: UGC
The majority of the debt's tier-one lenders, however, have not yet made any sizable payments.
Gbenga Adebayo, the chairman of the Association of Licensed Telecom Operators of Nigeria, disclosed this to the Punch on Thursday, November 21, 2024.
Although some repayments have been documented, he noted, they do not meet expectations.
“We are seeing payments from smaller players, but the big banks, which owe the most, have not been forthcoming,” Adebayo said on a call.
“We are now waiting for intervention from regulators, including the Central Bank of Nigeria and the Nigerian Communications Commission, to resolve the issue,” he stated.
Adebayo emphasized that the CBN and NCC must work together to protect the financial and telecommunications industries.
“The financial and digital economy depend on this service. It’s critical for regulators to step in swiftly to ensure resolution,” he said.
Recall that mobile operators have threatened to stop USSD services due to outstanding charges, but these actions were halted after government officials intervened.
This comes after a protracted disagreement over USSD service fees between banks and telecom providers. Following regulatory permission, telecom companies started charging N6.98 per transaction in 2021.
Telcos seek approval to deactivate USSD service
Legit.ng earlier reported that telecommunications companies requested regulatory authority from the Nigerian Communications Commission to remove Unstructured Supplementary Service Data services (USSD) from Nigerian banks, according to the Association of Licensed Telecommunications Operators of Nigeria (ALTON).
According to ALTON, the banks owe more than N250 billion for services rendered during the previous six years.
Because it doesn't require an internet connection, the USSD service, which offers airtime and subscription services, has been embraced by the banking industry.
Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.
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