After USSD Code Deactivations by MTN, Airtel, Others, FG Blacklists 18 Banks Over N250bn Debt
- The Nigerian government has listed the names of 18 banks to be blacklisted for owing telecommunications N250 billion
- The government said it would release the names of the debtor banks and ask the telcos to suspend shortcode or USSD services
- The development comes as the Nigerian Communications Commission (NCC) approved the disconnection of shortcode services to the 18 banks
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
There are signs that the Nigerian government will list the names of 18 banks owing about N200 billion in USSD debt to telecommunication companies.
The reason for the name and shame is that telecom companies halt further services to banks, stopping their customers from carrying out online transactions.
Source: UGC
NCC approves services disconnection to banks
According to reports, the Nigerian Communications Commission (NCC) has approved the publication of the banks’ names and asked telcos to withdraw their services after two weeks.
The multi-billion naira debt has lingered for five years, from below N40 billion to N57 billion by the end of 2021 and N80 billion in 2022.
As of December last year, the telcos estimated the debt to be N250 billion, accusing the banks of failing to comply with the repayment plan agreed with CBN and NCC.
The NCC and CBN resolved that the financial institutions make part of the debt payment by December 31, 2024, and gradually defray the remaining.
Four banks comply with a repayment plan
Vanguard reports that only four banks have complied with the order, while 18 remained recalcitrant.
Also, some years ago, the National Assembly, CBN, and NCC asked the banks to gradually defray the debts to avoid service disruption.
The Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), Gbenga Adebayo, said the banks were deliberately frustrating moves to resolve the issue.
Bank customers use USSD or shortcodes to make transfers, especially in areas with limited or no internet access.
If the Nigerian government's move against the banks goes through, customers will be without shortcode services, and access will be suspended.
USSD transactions decline in Nigeria
Legit.ng reported that data from the CBN put USSD transactions at N2.19 trillion between January and June 2024, representing a 54.75% decline from N4.84 trillion during the corresponding period of 2023.
Transaction volumes also dropped to 252.06 million from 630.6 million in the period.
Disagreement over payment methods has marred the relationship between the banking and telecom operators, prompting regulators’ interventions.
Available statistics show that banks charge N6.98 for every USSD translation and are expected to remit them to the telcos.
Access Bank, 3 others finally settle USSD debt
Legit.ng previously reported that with the NCC threatening to disconnect banks 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.
The NCC also threatened to make public the identities of 18 banks that have not paid their outstanding debts for accessing mobile network operators' Unstructured Supplementary Service Data platforms.
The telecom regulator is getting ready to take action, which may include stopping USSD services for the defaulting banks, who collectively owe N200 billion.
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Source: Legit.ng
