Telecos want NCC to approve scrapping of bank USSD transactions over N80bn debt

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Telecommunications operators in the country have again appealed to industry regulator, the Nigerian Communications Commission (NCC) for approval to partially phase out the Unstructured Supplementary Service Data (USSD) offered to Deposit Money Banks (DMO) over N80 billion debt owed them by the financial institutions.

According to Chairman, Association of Licensed Telecoms Operators of Nigeria (ALTON), Gbenga Adebayo, Friday, the operators had sought regulatory approval to implement partial removal of the USSD services offered to banks.

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Adebayo said that if the approval is granted by the NCC, the discontinuation would be done in batches, starting with the highest debtor bank immediately after they get approval.

“We have sought regulatory approval to pursue partial removal. We would start disconnecting those who owe us in batches, a highest debtor scenario. We don’t know as regards the timing because we are required to get approval before acting. But we would certainly commence the process once it is approved.

“The amount is over N80bn, it is not yet up to N90bn, but it is up to that.”

It would be noted that Deposit Money Banks (DMBs) in the country and telecoms operators have been at logerheads since 2019 over non-remittance of USSD fees.

In 2019, the telcos said they could no longer provide the services for free and proposed to take a cut of N4.50k per 20 seconds from the charges paid by customers to the banks.

However, the banks kicked against it, alleging that it would raise costs by 450 percent.

Earlier in March of 2021, telecom operators threatened to suspend the USSD service over N42bn accumulated debt by banks, a move halted by the Minister of Communications and Digital Economy, Isa Pantami.

Pantami, had written to Governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, highlighting the impending danger of the disagreement, while stressing the need for banks to pay the accumulated debt or risk suspension of the USSD platform.

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