Telecom Operators Provide Fresh Update on Banks' USSD Debt Payments
- Telecom operators in Nigeria have given a progress report on their dispute with Nigerian banks over the payment of USSD debt
- ALTON president stated that thanks to the intervention of the CBN and NCC, the banks have been responding positively
- He said that most of the payments have been made by the banks as the dispute nears a conclusive resolution
Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology and the Stock Market.
The Association of Licensed Telecoms Operators of Nigeria (ALTON) has provided an update on the ongoing dispute between Nigerian banks and telecom companies regarding the payment of debts for USSD services.
Speaking at a recent forum hosted by telecom operators, and attended by Legit.ng, ALTON President Gbenga Adebayo expressed satisfaction that banks have been making the expected payments to resolve the issue.
Source: UGC
It is worth noting that the USSD debt owed by banks to telecom operators grew from N32 billion in 2019 to nearly N250 billion in 2024.
Interestingly, USSD transactions in Nigeria reached 252.06 million in volume and were valued at N2.19 trillion during the first six months of 2024.
USSD dispute between banks, Telcos
USSD codes were originally designed by telecom companies for airtime recharge and subscription services, but they have become a key tool for expanding financial access in Nigeria.
This technology allows people to carry out banking transactions using SMS on their mobile phones without needing internet access, making it especially helpful in rural areas with weak or no internet connection.
Since 2019, banks and telecom operators have disagreed over unpaid USSD fees collected by the banks.
The dispute raised concerns about the future of the service, leading the NCC to intervene by warning that banks failing to pay could be blacklisted.
The NCC also announced that it would reclaim the shortcodes assigned to nine banks if payments were not settled by January 27.
ALTON confirms banks' making payment
Mr. Adebayo expressed his gratitude to all stakeholders for their efforts in addressing the debt issue and its impact on the industry.
He noted that the intervention of the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) has played a key role in driving stakeholders toward a resolution.
He said:
"I'm glad to say that we are seeing light at the end of the tunnel following the intervention of the CBN and the NCC. Monies are being paid and so progress is being made and that complex matter of debt of USSD is being resolved. I can say clearly that it has been des-escalated. We don't have as much concerns as we had in months past, We have made some progress in that regard towards a final resolution."
Adebayo also praised the NCC for approving a 50% tariff increase for telecom operators, emphasizing that the adjustment was aimed at stabilizing the industry rather than generating profits.
Banks' USSD codes for electronic transfer transactions
Meanwhile, Legit.ng earlier reported that the use of an electronic payment system is set to reach a new height as the CBN begins the implementation of its cashless policy
One major structure to achieve this is the use of USSD for transactions since it doesn't need internet
Legit.ng has provided a full list of all bank's USSD codes for quick electronic funds transactions.
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Source: Legit.ng
