The Association of Telecommunications Companies of Nigeria has urged industry regulators to implement clear and effective solutions to resolve the long-standing N250bn debt owed by banks to telecom operators for Unstructured Supplementary Service Data services.
The President, Tony Emoekpere emphasized the urgent need for clear solutions, warning that the N250bn USSD debt crisis jeopardizes the progress of financial inclusion in Nigeria, according to The Punch.
He highlighted that USSD plays a crucial role in financial inclusion, especially in rural areas with limited smartphone penetration and internet access.
USSD is essential for banks, particularly for mobile banking services, and is also widely used for functions such as airtime top-ups, bill payments, and other telecom services.
“My advice is that it is crucial for this debt to be addressed directly and for a solution to be found. If telcos are not encouraged to support the financial industry and such debts continue to accumulate, it will be detrimental to financial inclusion targets,” he said.
Emoekpere also emphasized the need to prioritize USSD traffic and create incentives for telecom operators to continue supporting the financial sector.
He called on industry regulators, including the Nigerian Communications Commission and the Central Bank of Nigeria, to establish a framework that ensures the timely and fair resolution of such disputes.
The debt crisis has lasted for years, with telecom operators threatening to suspend USSD services unless payments are made. While smaller banks have reportedly started repaying their obligations in installments, tier-one banks—responsible for the majority of the debt—have yet to make significant payments, according to the Chairman of the Association of Licensed Telecom Operators of Nigeria, Gbenga Adebayo.
“Some repayments have been recorded, but they fall short of expectations,” Adebayo said.
Telecom operators have consistently argued that the unpaid debts hinder their ability to maintain USSD services, which are crucial for financial transactions in Nigeria.
