FG set to name 18 Banks owing over N200bn USSD debt to telcos

The Federal Government is expected to disclose the names of 18 banks reportedly owing Nigerian telecom operators nearly N200 billion in Unstructured Supplementary Service Data (USSD) charges.

These banks have allegedly remained defiant in settling the debts, some of which have accumulated over several years.

According to industry sources, the move may prompt telecom operators to cease offering USSD services, which enable seamless online banking for the banks’ customers.

The Nigerian Communications Commission (NCC), the telecom regulator, has reportedly been authorized to publish the names of the indebted banks. The NCC has also been given the green light to approve the suspension of USSD services to the banks if they fail to settle their debts within two weeks.

Escalating Debt Crisis
The banks’ USSD debt to telecom operators has been a contentious issue since 2020, when it stood at below N40 billion. By the end of 2021, the debt had risen to N57 billion and further surged to N80 billion in 2022. As of now, the telecom operators claim the debt has surpassed N250 billion, with banks allegedly failing to comply with repayment agreements.

Regulatory Interventions
The recent push follows a December meeting between the NCC and the Central Bank of Nigeria (CBN), where both regulators agreed that the banks should pay part of the debt by December 31, 2024, and gradually clear the balance. However, authoritative sources revealed that only four banks complied with the directive, while 18 others did not.

This is not the first attempt to resolve the impasse. Previous interventions by the National Assembly, CBN, and NCC led to agreements that allowed the banks to gradually offset the debts, but these agreements were also allegedly breached.

Telcos Threaten Service Suspension
The Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), Gbenga Adebayo, recently accused the banks of deliberately frustrating resolution efforts. He warned that telcos might have no choice but to withdraw the USSD services that enable the banks’ online banking operations.

“The banks have consistently failed to honor their agreements, and the only viable option now may be to withdraw the support that keeps the USSD platform operational,” Adebayo stated.