Telecommunication companies are contemplating a repayment proposal from Deposit Money Banks (DMBs) to resolve the N120 billion debt related to the Unstructured Supplementary Service Data (USSD) service. Sources have indicated that the Central Bank of Nigeria (CBN) is intervening in the dispute and has plans to convene a meeting involving both parties.
The Association of Licensed Telecommunications Operators of Nigeria, the collective body representing telecom firms, has confirmed ongoing discussions regarding the proposed repayment plan. The dialogue is expected to cover the details of the payment arrangements, as the banks express readiness to settle the debt.
The USSD debt has reportedly continued to accumulate in 2023 due to the persistent utilization of the USSD channel by customers for various transactions and services.
The conflict over the USSD debt between telecom operators and banks dates back to 2019. During that period, telcos claimed that banks owed them N32 billion for the provision of financial services through USSD. However, reaching a resolution for repayment has proven challenging over the years, with telcos even considering the option of blocking banks from using USSD channels.
Opinion:
The ongoing negotiations between telecommunication firms and Deposit Money Banks to address the N120 billion USSD debt underscore the importance of collaborative efforts in resolving financial disputes. The involvement of the Central Bank of Nigeria in facilitating a meeting between the parties reflects the significance of finding a harmonious solution.
The persistence of the USSD debt issue in 2023 due to continued customer usage of the USSD channel highlights the economic impact of such financial disputes on both sectors. The proposed repayment plan and the willingness expressed by banks to fulfill their commitments are positive signs towards resolving the long-standing disagreement.
This situation emphasizes the need for clear and mutually beneficial agreements between different industry players to prevent prolonged disputes that can hinder the seamless delivery of services to customers. It’s encouraging that efforts are being made to find common ground and establish a repayment structure that addresses the concerns of all stakeholders involved.