NCC Engages CBN To Resolve N250bn USSD Debt Crisis

The Nigerian Communications Commission (NCC) has engaged in discussions with the Central Bank of Nigeria (CBN) to resolve the ongoing Unstructured Supplementary Service Data (USSD) debt crisis, which now amounts to a staggering N250 billion.

The USSD platform, widely used by Nigerians for quick mobile transactions, has been at the center of tensions between banks and telecom operators. Recently, Karl Toriola, the CEO of MTN Nigeria, warned that telecom companies might be forced to disconnect banks from the USSD platform due to the mounting debts.

This warning was backed by Gbolahan Awonuga, the Executive Secretary of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), who confirmed the N250 billion debt increase.

The conflict began in 2019 when telecom companies proposed a charge of N4.50 per 20 seconds of USSD usage to cover operational costs, after providing the service for free for many years. Banks rejected this proposal, arguing that it would result in a 450% rise in transaction costs. Since then, the debt has ballooned, straining the relationship between the two sectors.

As part of its efforts to address the situation, the NCC also plans to introduce reforms to improve tariff transparency within the telecommunications sector. These reforms will require telecom operators to publish clear and accessible tariff tables, which will include billing rates, plans, and terms. This initiative aims to provide consumers with the information they need to make informed decisions and build trust in the industry.

The resolution of the USSD debt crisis is seen as critical for the future of mobile banking and financial inclusion in Nigeria. With telecom operators threatening to suspend services and banks unwilling to absorb additional costs, the NCC’s intervention is viewed as a necessary step to avoid disruptions that could negatively affect millions of Nigerians and the broader economy. The outcome of these negotiations is eagerly awaited, as it could set a precedent for resolving similar issues in the future.

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