Nigerian banks have commenced the repayment of a ₦200 billion debt owed to telecom companies for utilizing Unstructured Supplementary Services Data (USSD) banking services. This debt, which has strained relations between banks and telcos for six years, is finally seeing movement following interventions from regulatory bodies.
The repayment process, initiated after a late 2023 meeting facilitated by Central Bank Governor Olayemi Cardoso, marks a pivotal step towards easing tensions in Nigeria’s financial and telecommunications sectors. Sources close to the situation, speaking on condition of anonymity, confirmed that banks have begun fulfilling their obligations under a structured payment plan.
However, challenges persist as highlighted by Gbenga Adebayo, president of the Association of Licensed Telecommunication Operators of Nigeria (ALTON). Adebayo expressed concerns over the sluggish pace of repayment, noting that despite the efforts, the total debt, comprising both principal and accrued interest, remains substantial and could escalate further if delays continue.
The ₦200 billion debt accumulated from USSD transactions underscores the critical reliance of banks on telecom infrastructure for delivering essential banking services to millions of Nigerians. USSD technology enables mobile banking activities such as fund transfers, balance inquiries, and bill payments, contributing significantly to financial inclusion efforts across the country.
The resolution of this debt issue is expected to foster a more collaborative environment between banks and telecom operators, crucial for sustaining and expanding mobile banking services in Nigeria. It also reflects ongoing efforts by regulatory bodies, including the Central Bank and the Communications Commission, to maintain stability and fairness within the financial and telecommunications sectors.
As the repayment process unfolds, stakeholders will closely monitor its progress, hoping for timely and complete settlement to mitigate further financial strain on both banks and telecom operators. The outcome of these efforts will likely shape the future landscape of USSD banking in Nigeria, influencing policies and operational dynamics for years to come.
