EXCEPT there is any other intervention, indications emerged Monday that the telecoms operators have concluded plans to suspend the Unstructured Supplementary Service Data (USSD) over the non-compliance of the deposit money banks (DMBs) to the payment of the protracted N250 billion debt.
The suspension of the USSD service is expected in two weeks due to the failure of the banks to comply with the December 20, 2024 joint directive of the Central Bank of Nigeria and the Nigerian Communications Commission (NCC), which required them to make part payment of the debt by December 31, 2024.
This newspaper gathered Monday that only four of the owing banks have made substantial payments, while 18 banks have not responded adequately.
Sources within the telecoms space said the two weeks is to prepare subscribers for the eventuality of the suspension of the service.
The sources, who were emphatic, said the Nigerian Communications Commission (NCC) has already approved the suspension, stressing that if nothing happens after the suspension on the part of the DMBs, the USSD service will be revoked.
On a related development, there are also indications that the Federal government will tomorrow list out names of the 18 banks owing the telecos.
Recall that despite regulatory interventions requiring banks to collect and remit the USSD fees since 2021, many banks have resisted. They argue that the charges are unfair and that USSD technology is outdated.
Specifically, former CBN governor, Godwin Emefiele described the cost incurred by telcos in putting the requisite infrastructure for which the transactions ride as “sunk
Similar concerns were raised by the late Group Executive of Access Bank, Herbert Wigwe, who questioned how telcos determine the fees. He argued that USSD is an outdated technology that will soon become obsolete.
These sentiments, widely shared among bank execs, have contributed to the growth of the USSD debt despite previous regulatory efforts. As of November 2024, telecom operators claim banks owe N250 billion for USSD services.
CEO of GTCO, Segun Agbaje, said all that was needed to be done was get the price of data reduced, arguing that USSD technology had become otiose.
Agbaje had said: “If you want to charge N20 for the service, go ahead. But collect it yourself. Don’t come to us.”
