In a fresh twist to the ongoing saga, telecommunication companies have issued warnings of potential service withdrawal if banks fail to settle the N120 billion debt owed for Unstructured Supplementary Service Data (USSD) services.
Chairman of the Association of Licensed Telecoms Operators of Nigeria, Gbenga Adebayo, revealed this recent development over the weekend. Adebayo expressed frustration with the prolonged issue and hinted at the possibility of seeking a court resolution due to banks’ apparent unwillingness to clear the debt.
Despite recent efforts to resolve the lingering USSD debt issue, which has persisted for approximately four years, telecommunication firms are considering drastic measures. Adebayo emphasized that, given the current impasse, withdrawal of services might be the best course of action.
He stated, “I think it’s just best to withdraw the services. On this issue of USSD debt, if parties have to go to court to get a final resolution, so be it. This is because every effort that is being made by everyone, where we move one step forward, several steps backward, is not going to work.”
Adebayo reiterated that the matter is essentially commercial in nature, and withdrawing the service is the appropriate response. However, he noted that political interference has hindered telcos’ ability to enforce commercial terms.
He explained, “So when you open a commercial agreement to political interference, you get into this kind of problem. That is why we say emphatically that some issues, including price review, should be left to market forces, not to be determined by the government because it is not sustainable.”
During a recent meeting with the Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani, the minister reportedly sympathized with the plight of the telecommunication companies. He emphasized that if the parties had acted responsibly, the matter would not have escalated to this point.
An earlier document shared with The PUNCH revealed that the minister had suggested that banks should not expect free services and should acknowledge the costs associated with every service rendered.
It’s worth noting that the USSD debt issue, which has persisted for an extended period, has been seen as a hindrance to financial inclusion in Nigeria. The immediate past Executive Vice Chairman of the Nigerian Communications Commission, Prof. Umar Danbatta, expressed concern about the issue’s impact on financial inclusion.
Gbenga Adebayo recently confirmed to The PUNCH that discussions regarding a repayment plan for the USSD debt are still ongoing between banks and telecommunication companies, indicating that a resolution is yet to be reached.
