The Association of Telecommunications Companies of Nigeria (ALTON) has asked the Nigerian Communications Commission (NCC) and other stakeholders to implement practical solutions to resolve the N250 billion debt by commercial banks to telecom firms for Unstructured Supplementary Service Data (USSD) service.
ATCON president Tony Emoekpere emphasised the need for solutions and warned that the debt threatens the progress of financial inclusion in Nigeria.
Telcos disclose the importance of USSD
He stated that USSD is critical for Nigeria’s drive for financial inclusion, especially in the rural areas with limited smartphone and internet access.
Experts say banks heavily depend on USSD, especially for mobile banking services and is also used for airtime, top-ups, bill payments, and other services requiring telecom services.
Emoekpere advised that the debt payment is crucial and a solution must be found, stating that if the telecom firms are not encouraged to support the financial industry and such debts continue to accrue, it will be challenging for the policy.
Punch reports that the ALTON boss also highlighted the importance of prioritising USSD traffic and creating the right environment for telcos to continue to support the financial sector.
He asked the NCC and other stakeholders, including the CBN, to establish a timely, equitable debt resolution payment plan.
ALTON asks for a payment plan
The debt crisis has lingered for several years, with the telecom companies threatening to halt USSD services if the debts are not paid.
According to reports, while smaller banks have commenced payments in instalments, tier-one banks, the heavy debtors, have yet to make significant payments to reduce the debt.
ALTON Chairman Gbenga Adebayo stated that these payments have been recorded but fall short of expectations.
The operators have argued that the debts undermine their ability to maintain USSD services.
Banks’ USSD transactions hit N2trn
Legit.ng earlier reported that USSD transactions in Nigeria hit N252.06 million in volume, valued at N2.19 trillion in the first six months of 2024.
The data is from the CBN’s latest economic statistics, which computed the figure for the year’s first two quarters.
According to the data, this amount accounts for 45.3% of the transaction value of N4.84 trillion recorded in 2023 and 40% above the overall transaction volume.
