The Federal Government has failed to intervene in the ongoing USSD debt crisis between the telecom operators and the financial banks in the country.
Chief Executive Officer (CEO) of MTN Nigeria, Karl Toriola on Monday said the banks might be disconnected from the unstructured supplementary service data (USSD) platform due to debt arising from the use of the quick codes by their customers.
But the Minister of Communications and Digital Economy, Dr. Bosun Tijani and the Nigerian Communications Commission (NCC) have not intervened as of Tuesday.
USSD, also known as quick or feature codes, is a global system for mobile communications (GSM) protocol that is used to send text messages and initiate financial transactions such as cash transfers, balance inquiries, payments for services and others.
Speaking to journalists on Monday in Lagos, Toriola said mobile network operators (MNOs) might, subject to regulatory approval, suspend supporting the use of the service on the network for banking operations, as the debt had continued to pile up and was becoming unsustainable to the operators.
He expressed optimism that Olayemi Cardoso, the governor of the Central Bank of Nigeria (CBN) and Aminu Maida, the executive vice chairman of NCC would resolve the impasse soon.
However, Toriola said if it is not resolved, the “operators would be compelled to seek regulatory approval to discontinue allowing commercial banks to run transactions on the platform”.
Toriola said if the government refuses to accede to telcos’ demands for tariff adjustment to reflect the realities of the economy, there will be dire consequences.
According to the CEO, the telecom sector is lying critically ill in the intensive care unit (ICU) and may die if the appropriate therapy is not applied to it.
“MTN and the entire industry are in a dire situation. MTN is loss-making because of naira devaluation,” Toriola said.
The Chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON), Engr. Gbenga Adebayo in a chat with one of our correspondents described the services provided by telecommunication firms for banks’ customers to use USSD as commercial and not for social purposes
“The debt has been long overdue and the banks who owe the telcos have more or less turned us to beggars on getting them to pay our debt, so there is no choice. If the regulators do not resolve the matter, what has been foreseen will happen, the services will be withdrawn. We are leaving to the CBN to resolve, if it is not able to resolve this matter, there will be no choice than to withdraw USSD from the banks,” he added.
The spokesman of NCC, Reuben Mouka was not available for comments on the issue. Mouka didn’t answer calls placed to his mobile line and didn’t also respond to the message sent to him as of the time of filing this report.
A telecom right activist, Deolu Ogunbanjo, said Nigerian telecoms’ subscribers should sue the banks if they couldn’t use the USSD for their banking transactions by May ending.
Ogunbanjo, who is the president of the Association of Telecom Subscribers of Nigeria (NATCOMS), said the telcos wouldn’t be doing anything wrong if they eventually disconnect the banks.
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