NCC, CBN resolve N120bn USSD debt dispute

THE tussle between telecom companies and commercial banks has been resolved. The banks were indebted to network providers like MTN and Globacom from between N100 billion and N120 billion due to their customers’ use of the Unstructured Supplementary Service Data (USSD) platform, which carries a flat fee of N6.98 per transaction.

The root of the conflict stemmed from the differing preferences regarding billing methods. Banks initially insisted on end-user billing rather than corporate billing.

However, after the intervention of the Acting Governor of the Central Bank of Nigeria (CBN), Mr. Folashodun Shonubi, a breakthrough was achieved.

The banks have committed to clearing their accumulated debt and will henceforth adopt the corporate billing model for USSD services.

Umar Danbatta, the Executive Vice-Chairman of the Nigerian Communications Commission (NCC) stressed that digital financial inclusion, currently at 70 percent, heavily relies on USSD services provided by telcos, and that non-payment disrupts progress.

At a Telecom Executives and Regulators Forum which took place in Lagos on Thursday, Danbatta revealed that banks have agreed to pay for the service following the NCC and Central Bank of Nigeria’s intervention.

Analysts emphasise the critical role of telecom services in achieving financial inclusion. Currently, financial inclusion rates stand at around 70%, largely because of telco-driven initiatives

 

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