Telcos, Banks Move Toward Resolving USSD Debt Crisis
Telecom operators in Nigeria are optimistic about settling a long-standing debt dispute with banks over Unstructured Supplementary Service Data (USSD) transactions.
A joint directive from the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) on December 20, 2024, introduced a structured payment plan for the N250bn debt.
Under the plan, 60% of debts incurred before February 2022 must be paid by July 2025, while 85% of debts from after February 2022 are due by the end of 2024.
The Chairman of the Association of Licensed Telecom Operators of Nigeria, Gbenga Adebayo, expressed confidence that telecom operators would adhere to the terms.
He noted that the regulators’ intervention had improved the situation, bringing both sectors closer to resolving the issue.
Adebayo also emphasized that the CBN and NCC had warned of sanctions for non-compliance, urging all involved parties to drop any pending legal cases.
The dispute has strained relationships between telecoms and banks, and its resolution is seen as vital to maintaining the reliability of mobile financial services, particularly in rural areas where USSD plays a key role in financial inclusion.