Telecom Operators Threaten USSD Shutdown As Debt Dispute With Banks Hits N200bn

November 17, 2023
Despite Challenges, USSD In Banking Still Derives Financial Inclusion?

Telecommunications operators in Nigeria have threatened to shut down the Unstructured Supplementary Service Data (USSD) service amidst escalating tensions with deposit money banks (DMBs) over an outstanding debt reaching N200 billion.

The deadlock, now entering its fifth year, threatens to disrupt vital mobile transactions, including fund transfers and account inquiries conducted without internet access.

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Addressing concerns, Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), emphasized the urgency of resolving the issue to prevent service disruptions. “Despite appeals and interventions, no progress has been made,” Adebayo stated during a meeting with the Nigerian Communications Commission (NCC).

Expressing dismay over the mounting debt, a chief information officer of a leading bank acknowledged the technical complexities but urged a swift resolution. “The matter is becoming ridiculous; the figures keep escalating. It’s high time the banks and telcos resolved this,” the officer stated anonymously.

READ ALSO: Telecom Companies Threaten To Withdraw USSD Services Over Lingering N120bn Debt

Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani, urged understanding from DMBs regarding debt repayment during discussions with ALTON. He stressed the need for collaborative efforts and highlighted the costs associated with services provided.

Meanwhile, Segun Agbaje, CEO of Guaranty Trust Holding Company Plc, criticized USSD as an outdated technology, advocating for reduced data costs as the solution for financial inclusion. He argued that Nigeria’s high data expenses hinder progress, redirecting attention from core economic development.

Agbaje’s remarks underscore a growing sentiment that USSD disputes divert attention from broader issues surrounding data affordability. The escalating feud threatens not only service continuity but also impedes Nigeria’s strides toward financial inclusion and economic growth.

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Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.

Emmanuel Ochayi

Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.

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