The Nigerian Communications Commission (NCC) has received presidency’s nod to publish the names of 18 banks owing almost N200 billion to Nigerian telecom operators on Unstructured Suplementary Service Data (USSD), and had frustrated efforts towards settling it for several years.
The NCC also got approval that telcos withdraw services to the banks if, after two weeks, they fail to settle the debts.
The impending actions might be part of decisions to resolve the logjam over the issue of banks’ multi billion naira USSD debt to telcos, which has lingered since 2020, rising from below N40 billion to N57 billion by the end of 2021 and N80 billion in 2022.
The telcos claim that the debt has risen above N250 billion and accused the banks of not complying with the agreed repayment plan. This is at a time when the telcos are groaning over high operating costs and non commensurate revenue.
The recent development, cannot be unconnected with a December joint meeting between the two regulators, NCC and the Central Bank of Nigeria which resolved that the banks pay part of the money by December 31, last year and defray the remaining gradually.
Only four banks are believed to have complied with the directive, while 18 others are still adamant.
Similarly, when the matter brewed heavily a few years ago, the National Assembly, Central Bank of Nigeria, CBN, and the Nigerian Communications Commission, NCC, waded in and also generated such a gentleman’s agreement, which gave the banks leverage to defray the debts gradually.
However, that did not also happen as the banks allegedly reneged.
A few weeks ago the Chairman, Association of Licensed Telecommunications Operators of Nigeria (ALTON), Gbenga Adebayo, accused the banks of deliberately frustrating any move to resolve the issue and threatened that the only option, since the banks have consistently failed to honour the agreements, would be to withdraw the support that gives the USSD platform life.
USSD, commonly known as ‘bank transfers’, is done through short codes on mobile phones.
The support is provided by the telcos.
If the latest approval to blacklist the 18 banks is carried out, it means that in the next two weeks all the short code services to such banks may be suspended and users will not be able to carry out some online banking services from the comfort of their homes
