Telecommunications
Telecom Operators Set to Suspend USSD Services Over Banks’ N250bn Debt
Barring any last-minute intervention, telecom operators have finalized plans to suspend Unstructured Supplementary Service Data (USSD) services in two weeks due to the failure of deposit money banks (DMBs) to pay a longstanding N250 billion debt.
This decision follows the non-compliance of banks with a joint directive from the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) on December 20, 2024, which mandated part payment of the debt by December 31, 2024.
Sources within the telecom industry confirmed that only four banks have made significant payments, while 18 others have failed to meet their obligations.
The NCC has approved the suspension, giving subscribers a two-week notice to prepare for potential disruption.
If the banks fail to act, the USSD service may be revoked entirely, with the Federal Government expected to name the 18 defaulting banks.
Despite regulatory efforts since 2021, banks have resisted paying USSD fees, arguing the charges are excessive and the technology outdated. Industry executives, including former CBN governor Godwin Emefiele and GTCO CEO Segun Agbaje, have criticized the cost structure, with some suggesting that telecom operators collect the fees directly.
Telecom operators maintain that banks owe N250 billion as of November 2024 for USSD services, and unless the debt is resolved, service suspension appears inevitable.