Nigeria’s telecom operators have advocated for the adoption of a regulatory framework under the approval of the Nigerian Communications Commission to get access to Unstructured Supplementary Service Data services from banks due to an outstanding debt of over N250bn.
This debt which has lasted for the past six years, attracting interventions from the Central Bank of Nigeria under Godwin Emefiele’s leadership and the former Minister of Communications, Isa Pantami, is yet to have a solution to the long-standing issue.
While speaking, the Chairman of the Association of Licensed Telecommunications Operators of Nigeria, Gbenga Adebayo, decried on how banks have been making profits from the USSD services without fulfilling their own part of payment obligations for the past six years now.
In his words, he said : “Under normal circumstances, this would be a straightforward commercial transaction, but it has gained political interest. If it were simply business as usual, there are clauses in the contract that would allow each party to prepare themselves’’
“Both parties would have been able to invoke those clauses. However, due to the political interest that has developed over the years, it has now become necessary for operators to seek regulatory clearance before taking any action,” he told journalists on Tuesday.
The chairman further expressed that the USSD issue has been a longstanding concern, stating that the outstanding debt must be addressed with urgency.
“The reality now is that this money has to be paid. We’ve delayed it for too long, and there have been too many discussions and questions surrounding it. What’s not right is not right. There’s no other name for it. The profile of this debt has risen and lingered for too long.” He said.
During May last year, the NCC granted telcos approval to disconnect banks from using USSDs.
According to the chairman, the debt that was N80bn as of November 2022 rose to more than N120bn by April 2023 and now stands at over N250bn.
Some bank executives however, including the late CEO of Access Holdings, Herbert Wigwe, and Group CEO of Guaranty Trust Holding Company, Segun Agbaje, have in the past questioned how the telecom operators arrived at the current debt figure.
The USSD service initially developed by telecom companies for providing airtime and subscription services has been widely adopted in the banking sector because it does not require an internet connection.
The chairman explained that while the banks do not dispute their indebtedness, the only point of contention is the amount owed.
“We have records and information indicating that traffic remains the same, but they have not paid for it. They aren’t disputing that they owe money; what’s being disputed is the amount. They aren’t denying the debt itself.
“A debtor is a debtor, regardless of the amount. Whether you owe a small or large sum, if you’re in debt to a bank, they will act against you without regard for the size of the debt’’ he said.
He also spoke on the irony of the situation, asserting that if this debt were owed to the banks, they would have already taken action, including employing debt recovery agents to take up the matter with the debtor operators in an urgent approach.
The potential withdrawal of USSD services could lead to considerable disruption in banking operations, raising concerns about the implications for both the telecommunications and banking sectors.
Also speaking, the Director at Adaba Consult, a telecommunications consultancy firm, Ejike Onyeaso, said the major of the issue lies in the leased lines granted to banks and their usage.
He also explained that while telecom service providers have been offering these lines, the banks have not compensated them as agreed for the services rendered.
“Telecom companies are saying that since the banks are using these services to generate additional revenue—specifically through USSD—it only makes sense that they pay us for the services rendered’’
“The staggering amounts involved necessitate the sustainability of the telecommunications industry,” he said. “At the same time, it’s vital for the banking sector to avoid any form of collapse. If telecommunications operators follow through on their threats, certain banking services would be impacted during any suspension’’ he said.
He also urged both sides to return to the negotiating table, emphasizing that a resolution is essential in other to move forward and be at peace with each party.
He pointed out that while the banks may have a different perspective on the matter, they cannot deny that the services are being provided.
“If they believe these services are not necessary, they should allow us to withdraw them from our platform. It’s that straightforward,”
“A laborer deserves their wages; they need to pay us for the service provided,” he concluded.
Recently, MTN’s CEO, Karl Toriola, expressed confidence that the newly appointed Central Bank of Nigeria governor, Yemi Cardoso, alongside the Executive Vice Chairman of the Nigerian Communications Commission, Dr Aminu Maida, in finding a lasting resolution to the ongoing dispute.
