NCC and CBN Move to Resolve ₦250 Billion USSD Debt Crisis
By Gloria Sarauniya Usman
ABUJA, NIGERIA November, 2024 - The Nigerian Communications Commission (NCC) is collaborating with the Central Bank of Nigeria (CBN) to address the escalating ₦250 billion debt crisis involving Unstructured Supplementary Service Data (USSD) services. The dispute, which has lingered for years, pits telecommunications operators against Deposit Money Banks (DMBs) over payment responsibilities for USSD transactions.
USSD, often referred to as quick codes, is a critical GSM protocol used for mobile transactions, including fund transfers, balance inquiries, and utility bill payments. Despite its importance, disagreements over the cost-sharing model have strained the relationship between telcos and banks.
The conflict began in 2019 when telecom operators announced they could no longer provide USSD services at no cost. They proposed a charge of ₦4.50 per 20 seconds from the fees paid by customers to banks. However, the banks opposed this, citing a potential 450% cost increase for consumers, and the matter remains unresolved.
Mounting debts have forced telecom giants, including MTN, to consider suspending USSD services for banking operations, pending regulatory approval. MTN’s CEO, Karl Toriola, described the current situation as unsustainable for mobile network operators (MNOs).
To avert potential disruptions, the NCC has intervened to mediate. Dr. Ikechukwu Adinde, NCC’s Director of Consumer Affairs Bureau, shared during a recent journalists' training program that discussions with the CBN are ongoing. He expressed confidence that a resolution would soon be reached, ensuring uninterrupted service for millions of Nigerians.
The stakes are high, as USSD remains a lifeline for financial transactions, particularly in areas with limited access to internet banking. Resolving the crisis is vital to maintaining stability in Nigeria’s financial ecosystem.
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