Telcos Seek Govt Approval To Deactivate Nigerian Banks’ USSD Service, Give Reasons
- Telecom operators are demanding the payment of N250 billion USSD debt owed by Nigerian banks
- The telcos have approached the Nigerian Communications Commission (NCC) for approval to block services
- Nigerian banks use dedicated USSD codes for transfers, airtime purchases, and other banking services
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The Association of Licensed Telecommunications Operators of Nigeria (ALTON) has revealed that telecommunication companies are pushing for regulatory approval from the Nigerian Communications Commission to withdraw Unstructured Supplementary Service Data services(USSD) of Nigerian banks.
ALTON revealed that the banks have owed over N250 billion for services provided in the last six years.
Source: Getty Images
The USSD service provides airtime and subscription services and has been adopted in the banking sector because it does not require an internet connection.
Telcos demand refund
Gbenga Adebayo, the chairman of ALTON, revealed that the debt payments have been a longstanding concern, Punch reports.
He added that the debt has increased over time, from N80 billion in November 2022 to N250 billion.
Adebayo called on banks to address the outstanding debt.
His words:
"Normally, this would be a straightforward commercial transaction, but it has attracted political interest. Under regular circumstances, the contract contains clauses that would allow both parties to prepare and take action.
"However, with the political attention that has developed over time, operators now need regulatory approval before proceeding.
"The fact is, this debt must be paid. It has been delayed for too long, with ongoing discussions and questions surrounding it. What's wrong is wrong, and there's no other way to put it. This debt has been elevated and has lingered for too long."
USSD codes to lock accounts
Earlier, Legit.ng provided a full list of all banks' USSD codes to lock bank accounts in the event of phone theft easily. Banks have also stepped up their efforts to sensitise their customers and advised them on what to do not to fall victim.
The development followed rising cases of fraud linked to USSD in the country.
Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.
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Source: Legit.ng
