The Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) have jointly instructed banks to settle an outstanding N250 billion debt owed to telecommunications companies for Unstructured Supplementary Service Data (USSD) services. This debt has accumulated over time as banks rely heavily on USSD technology to facilitate mobile banking transactions for millions of Nigerians. The issue has become critical, with telcos threatening to suspend services unless the debt is addressed promptly.
USSD services, which allow users to access financial transactions without internet connectivity, have historically played a key role in promoting financial inclusion in Nigeria. However, their usage has declined by 150% in recent months due to unresolved pricing disputes between banks and telcos. According to a statement by the NCC, a collaborative resolution is essential to avoid further disruptions to mobile banking services.
Telecommunications companies argue that the cost of maintaining USSD infrastructure is unsustainable without timely payments from banks. The Association of Licensed Telecommunications Operators of Nigeria (ALTON) has highlighted how these delays in payment hinder their ability to upgrade infrastructure. Industry experts have called for a review of the existing pricing framework to ensure a fair balance between affordability for consumers and profitability for service providers.
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From the perspective of consumers, many are turning to alternative channels like mobile apps and internet banking to bypass the issues plaguing USSD. However, rural communities that lack access to reliable internet depend heavily on USSD for banking and financial services. As telecom operators warn of possible service disruptions, millions of Nigerians face the risk of being excluded from essential financial systems.
In a bid to prevent such outcomes, the CBN and NCC have formed a task force to mediate between stakeholders and devise a sustainable payment plan. This move has been welcomed by both industries, although critics argue that long-term solutions are needed to address the systemic challenges of Nigeria’s mobile banking ecosystem.
With USSD technology still vital to bridging the digital divide in Nigeria, the resolution of this debt crisis will determine its future role in the financial sector. Policymakers, banks, and telcos must now collaborate to rebuild trust and ensure uninterrupted services for Nigeria’s growing population of mobile banking users.
