The nine banks owing telecommunication companies for USSD debt are likely not be disconnectedAccording to report, nearly all banks have made significant contributions towards paying the detIf deactivated, many would not have access essential financial services as many rely on the service
Henzodaily.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
There are indications that none of the nine banks that were designated to be disconnected from the Unstructured Supplementary Service Data (USSD) service due to a debt of N160 billion will lose access to USSD services.
The CBN and the NCC ordered banks to pay a portion of the USSD debt owed to telecoms. Photo Credit: Zenith Bank
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According to report, by New Telegraph. nearly all of the affected banks have allegedly made considerable progress in repaying their debt.
Through the use of a communication protocol called USSD, customers can transmit commands and brief messages to the computers of their mobile network provider. USSD is also referred to as “quick codes” or “feature codes.”
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Many Nigerians rely on USSD as a payment gateway, and its deactivation would prevented many from accessing vital financial services.
The Nigerian Communications Commission (NCC) announced in a notice on January 15 that it will terminate nine banks’ access to USSD by January 27 due to their failure to pay off USSD accrued since 2019. To guarantee that their clients would keep using USSD for financial services, these institutions have hurried to defuse the situation.
Gbenga Adebayo, chairman, Association of Licensed Telecommunications Operators of Nigeria (ALTON), disclosed that, “The matter has been de-escalated. Money has been paid, and we are making progress thanks to the regulators.”
The CEO of MTN Nigeria, Mr. Karl Toriola, stated earlier this week that banks and telcos have settled their disagreements.
“The USSD debt issue is resolved, thanks to the masterstroke by both the Central Bank of Nigeria and NCC.”
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According to recent reports, five out of the nine banks had paid in some way prior to the January 27 deadline set by the NCC. Fidelity Bank Plc (770), First City Monument Bank (329), Jaiz Bank Plc (773), Polaris Bank Limited (833), Sterling Bank Limited (822), United Bank for Africa Plc (919), Unity Bank Plc (7799), Wema Bank Plc (945), and Zenith Bank Plc (966) were among the nine banks that would have been impacted by the commission’s decision to disengage.
The CBN and the NCC ordered banks to pay a portion of the USSD debt owed to telecoms since commercial banks have been unable to resolve a payment dispute with telcos over USSD infrastructure since 2019.
Eighty-five percent of all outstanding invoices (from February 2022) must be paid by December 31, 2024, according to a document issued by the CBN and the NCC on December 20. By the deadline, nine out of the eighteen banks that owed the telcos had paid off more than ninety percent of their debt, according to the NCC.
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Telco date to commence 50% tariff hike
Henzodaily.ng reported that the Association of Licensed Telecommunications Operators of Nigeria (ALTON) says telecom operators will begin charging the new 50% tariffs in March.
Henzodaily.ng previously reported that the Nigerian Communications Commission (NCC) approved a 50% tariff hike for the telcos on January 20, 2025, after a decade.
Three days after the approval, Wale Edun, the minister of Finance, disclosed that the tariff hike in the telecom sector would be reviewed periodically.
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Source: Henzodaily.ng