The Executive Vice Chairman of the Nigerian Communications Commission, Prof. Umar Danbatta, has emphasized that the N120 billion Unstructured Supplementary Service Data (USSD) debt owed by banks to telecommunication firms is impeding financial inclusion.
He emphasized that digital financial inclusion, currently estimated at 60 to 70 percent in the country, owes much of its success to this service. Danbatta clarified that this service is primarily driven by telecom companies and should, therefore, be rightfully compensated.
At the Telecom Executives and Regulators Forum organized by the Association of Telecommunications Companies of Nigeria in Lagos, Danbatta revealed that banks have now agreed to pay for the service following sustained intervention from the NCC and the acting Central Bank of Nigeria governor, Folashodun Shonubi.
Danbatta sees this development as crucial for the telecom industry and a testament to everyone’s shared goal of serving the government effectively. He emphasized the importance of resolving the legacy debt issue and ensuring prompt payment for ongoing services, as these are vital for maintaining uninterrupted financial services in the country.
This development marks a significant step towards ending the long-standing disagreement between banks and telecom companies regarding USSD infrastructure payment. Since 2019, the USSD debt has been mounting, growing from N32 billion to N120 billion by the end of 2022. At different points, telecom companies had threatened to disconnect banks from using the infrastructure due to non-payment.
According to Gbolahan Awonuga, the Head of Operations at the Association of Licensed Telecommunications Operators of Nigeria, some banks have begun to settle their USSD debt, although the amounts paid so far are not substantial.