Telcos seek to phase out USSD Bank Transactions

Telecommunication operators have reached out to the Nigerian Communications Commission for approval to phase out the Unstructured Supplementary Service Data offered to banks due to over N80bn debt.

The Chairman, Association of Licensed Telecoms Operators of Nigeria, Gbenga Adebayo, said that the operators had sought regulatory approval to implement partial removal of the USSD services offered to banks.

He stated that the disconnection would be done in batches, starting with the highest debtor immediately after they get approval.

He said, “We have sought regulatory approval to pursue partial removal. We would start disconnecting those who owe us in batches, a highest debtor scenario. We don’t know as regards the timing because we are required to get approval before acting. But we would certainly commence the process once it is approved. The amount is over N80bn, it is not yet up to N90bn, but it is up to that.”

Deposit Money Banks and telecom operators have been at odds since 2019 over non-remittance of USSD fees.

In 2019, telcos said they could no longer provide the services for free and proposed to take a cut of N4.50k per 20 seconds from the charges paid by customers to the banks.

However, the banks kicked against it, alleging that it would raise costs by 450 percent.

Earlier in March of 2021, telecom operators threatened to suspend the USSD service over N42bn accumulated debt by banks — a move halted by the Minister of Communications and Digital Economy, Isa Pantami.

Pantami, had written to CBN Governor, Mr. Godwin Emefiele, highlighting the impending danger of the disagreement and stressing the need for banks to pay the accumulated debt or risk suspension of the USSD platform.

Punch/Hauwa Abu