It has been reported that there is a fresh crisis brewing between the banking sector in Nigeria and the telecom operators over the lingering N80 billion unstructured Supplementary Service Data (USSD) debt banks owed the telcos.
The telcos have called out the banks for not complying with the repayment plan, stressing that the debt has increased to N80 billion from N42 billion reported last year.
Speaking on Telcos displeasure, the Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), Gbenga Adebayo while speaking at the ICT Growth Conference organized by the Nigeria Information Technology Reporters Association (NITRA) stated that the operators were perturbed with the lackluster attitude of banks towards settling the debts, adding that ALTON members are already considering disconnecting some of the banks from the networks.
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What this means is that if telcos go ahead to disconnect some banks from the networks, USSD services on those banks might be suspended which will make it impossible for their customers to carry out some online banking services from the comfort of their homes or place of work.
In his words, “The banks would want us to be silent about the USSD debt, but it is not going away until they pay. At the last count, the debt is now N80 billion.
“Some banks are responding while others are not. We are nearing that time when we have no choice but to discontinue the provisions of services to banks.”
“I think it is dishonorable that our colleagues in that sector know that they have an obligation to service providers and are shying away from it.
“Banks remove charges from their customers but refuse to pay telecom operators. You don’t expect us to keep rendering services when you don’t pay”.
This is not the first time Telcos and banks have been at loggerheads over unpaid fees, the saga has lingered since 2020, which saw the debt rise from below N40 billion in 2020 to N57 billion by the end of 2021.
On March 15, 2021, the telecommunication operators threatened to withdraw their USSD services to banks due to the N42 billion accumulated debt.
However, this whole issue was doused with an intervention from the Central Bank of Nigeria (CBN) and the Nigerian Communication Commission (NCC), that brokered peace.
Both parties (the telcos and the banks) went into a meeting with the federal government representatives, and the planned withdrawal action by the telcos was kept aside.
Following the outcome of the meeting, the Central Bank of Nigeria (CBN) and the Nigerian Communication Commission (NCC), announced the introduction of N6.98 per transaction as new charges for customers using the USSD services which took effect from March 16, 2021.
However, the chairman of Telcos in Nigeria Gbenga Adebayo revealed that the banks reneged on their agreement and allowed the debt to rise.
He also spoke on the challenges of multiple taxes operators faced in some states in the country, Adebayo said the challenge had become a major concern to the industry, saying over 40 different taxes were being slammed on the operators.
While emphasizing the need for urgent actions to be taken, Adebayo noted that the regime of national tariffs should be over. He said operators may be compelled to introduce discriminatory prices on tariffs.
Come to think of it, customers pay today to make calls and send SMS.
USSD is another telco service like “calling” or messaging. Why then should a bank be the one to pay for the “call” someone made to me?
That’s a question that needs to be discussed and answered. I think telcos asking banks to pay for USSD on behalf customers is inappropriate.
On the other hand, if the banks have for whatever reason deducted these USSD call charges (not the regular transfer charges in this case), then CBN has the mandate to use their power to either direct the banks to remit same to the Telcos or refund such deductions to the customers.