The Association of Corporate Affairs Managers of Banks (ACAMB) is urging ongoing discussions between all parties involved to prevent any negative impact on bank customers. This comes after the Nigerian Communications Commission (NCC) threatened to cut off banks from telecom services. The NCC is particularly concerned about 18 banks that have not paid their debts for using a service called Unstructured Supplementary Service Data (USSD), which allows customers to perform banking tasks through their mobile phones.
These banks owe a total of 200 billion Naira (about $260 million) to telecom companies. If the banks do not settle their debts, the NCC is considering suspending USSD services for those banks, which would mean customers could not perform important banking activities like transferring money, checking their account balances, buying airtime or data, or accessing quick loans. This would be especially harmful to everyday people who rely on these services.
Rasheed Bolarinwa, the President of ACAMB, emphasized that many customers, particularly those from lower-income backgrounds, would be significantly affected if USSD services were disconnected. He pointed out that both banks and telecom companies would also lose out on earnings from these services.
Bolarinwa advocates for continued dialogue to resolve the issue of USSD debts without resorting to cutting off services. He believes that all parties involved, including banks, telecom companies, and regulators, can come to a peaceful agreement that benefits everyone, especially the customers who depend on these services.
He also mentioned that there are ongoing efforts to resolve the debts amicably, indicating that discussions are taking place among banks, telecom companies, and regulators to find a solution that avoids service disconnections.
In the larger context, Bolarinwa noted that banks and telecom companies have a mutual interest in maintaining a good working relationship. He highlighted that banks have become a valuable source of funding for telecom companies, especially in light of recent economic challenges in Nigeria.
On a related note, Access Bank has reportedly paid off its debt to the telecom companies for using USSD services. A source from Access Bank confirmed that the payment was made recently, following advice from their channels unit. However, it has been reported that only four banks have settled their debts so far, while others are still in the process of reconciling their accounts to avoid any disruption in services.
