Access Bank, 3 Others Finally Settle USSD Debt as Officials Speak on Dialogue
- To protect bank customers, the Association of Corporate Affairs Managers of Banks has called for constant contact between all parties involved in USSD debt issue
- Additionally, the NCC threatened to reveal the identities of 18 banks that have not settled their outstanding obligations in order to gain access to USSD
- Meanwhile, Access Bank said that the debt it owed telecom firms for using Unstructured Supplementary Services has been settled
Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
With the Nigerian Communications Commission threatening to cut banks off from telecom providers, the Association of Corporate Affairs Managers of Banks has asked for ongoing communication among stakeholders to prevent any harm to bank clients.
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The NCC also threatened to make public the identities of 18 banks that have not paid their outstanding debts for accessing the Unstructured Supplementary Service Data platforms of mobile network operators.
The telecom regulator is getting ready to take action, which may include stopping USSD services for the defaulting banks, who collectively owe N200 billion.
Speaking with The PUNCH on Tuesday, the President of ACAMB, Rasheed Bolarinwa, said,
“Many customers, especially at the retail end (mostly peopled by citizens at the lower rung of the society) who access banking services via the USSD Channel, might be impacted as they’d not be able to engage in banking activities like transfer of funds, checking their accounts balance, buy air time/data or even access quick loans) which will be a shame. Earnings, however marginal, that accrue to banks also from the use of USSD platforms would be affected somehow, ditto for the telcos.
“ACAMB advocates continued discussions and dialogue as we are of the view that all issues on USSD debt among others, could be resolved amicably without any recourse to disconnection of USSD service to the Banks in the best interest of these two critical sectors and their respective customers who utilize this all-important platform.”
Bolarinwa added that the association was aware that efforts were already being made to resolve the matter, saying,
“ACAMB is aware of efforts being made by stakeholders across both divide (DMBs, telcos & the regulators) to amicably settle agreeable amount Deposit Money Banks are said to owe for USSD billings provided to banks by telcos that might make disconnection an unnecessary step to take.
“The banking sector and the operators in the telcos ecosystem must continue to explore mutually beneficial ways of resolving any issue that arises in the course of doing business together. After all, the telcos found Nigerian banks an attractive option to increase their borrowing by the end of the 2023 financial year when they found foreign loans expensive following a challenging operating environment and devalued Naira.
“Just as the DMBs are said to owe telcos for USSD billings, so are Telcos also exposed to the Banks with huge credit according to statistics released recently by the regulators which shows sectoral distribution of bank credit to telcos.”
Access Bank settles debt
According to The PUNCH, Access Bank has settled its share of the debt owing to telecom providers for the use of USSD.
Speaking with The PUNCH on Tuesday, January 14th, a source at Access Bank said,
“We have paid. The payment was made recently. (This is ) as advised by our channels unit.”
Only four banks have offset their debt to the telcos, according to industry sources who spoke to The PUNCH on Monday.
Speaking on the condition of anonymity, a national bank spokesperson stated that it was a case of reconciliation and expressed hope that it would be completed quickly to prevent service interruptions.
FG orders banks to pay MTN, Airtel, others
Legit.ng reported that the Nigerian Communications Commission and the Central Bank of Nigeria have given Deposit Money Banks and Mobile Network Operators a firm order to resolve the ongoing N250 billion Unstructured Supplementary Service Data debt issue.
The decision was issued in a joint circular dated December 20, 2024, and was signed by Chizua Whyte, the head of legal and regulatory services at the NCC, and Oladimeji Taiwo, the acting director of payments system management at the CBN.
According to the Punch, the document contained a structured debt settlement payment plan and new operational guidelines for USSD services.
Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.
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