The Nigerian Communications Commission (NCC) and the Central Bank of Nigeria (CBN) have re-opened their discussions over the lingering banks’ Unstructured Supplementary Service Data (USSD) debt totalling N250 billion to telecom operators with a view to amicably finding lasting solution to the faceoff in view of the benefits to the economy.
The USSD indebtedness has generated serious bickering between the telcos and the deposit money banks for over five years now with each of the parties maintaining a stance that is not really creating opportunities for an amicable resolution of the imbroglio.
For instance, while the mobile network operators (MNOs) proposed to charge N4.50 per 20 seconds of USSD usage in order to cover operational costs after years of providing the service for free, the banks opposed the proposal, arguing that a 450% increase in transaction costs will impact negatively on their bottom line amid surging operational costs.
Though the apex bank had intervened on the faceoff between the telcos and the DMBs last year, its intervention did not actually resolve the disagreement between the banks and the telcos, despite the assurances given by them to agree on some settlement terms.
As part of its sustained regulatory drives to make the telecoms industry’s operating environment for all stakeholders, the NCC has again initiated moves to reengage the CBN in further discussions to finally find a lasting solution to the USSD brouhaha between the two ‘combatants’
To achieve this, NCC’s Director of Consumer Affairs Bureau, Dr Ikechukwu Adinde, a few days ago expressed optimism that the faceoff would soon be settled as the commission “remains committed to ensuring that the interests of all stakeholders—consumers, telcos, and banks—are protected.”
Noting that a resolution of the imbroglio is critical to sustaining e-transactions in the country, the Director also hinted that plans were being made by the NCC’s management to introduce reforms at enhancing tariff transparency in the telecommunications industry, as well as ensuring that the MNOs and banks’ USSD indebtedness saga is finally resolved.
According to him, the proposed transparency and responsibility policy being mulled by the telecom industry regulatory commission will, for instance, require telecom operators to provide consumers with clear, easily accessible tables outlining tariff plans, billing rates, and the terms and conditions associated with their services.
It would be recalled that the Executive Secretary of the Association of Licensed Telecommunication Operators of Nigeria (ALTON), Gbolahan Awonuga, had in October this year disclosed that the USSD debt had risen to N250 billion.
Commenting on the implications of the huge indebtedness for the telcos then the Chief Executive Officer (CEO) of MTN Nigeria, Karl Toriola, warned that the banks might be disconnected from the USSD platform, due to what he termed the unsustainability of freely providing USSD services to the banks when the outstanding debt is not offset.
