Telcos To Blacklist 18 Banks’ USSD Access Over N200bn Debt

Telecommunication companies are set to suspend 18 banks’ Unstructured Supplementary Service Data (USSD) access due to their inability to settle an N200 billion debt. This is under the directive of the Nigerian Communications Commission (NCC).
This follows a recent order by the Central Bank of Nigeria (CBN) and the NCC, which ordered banks to pay a chunk of the USSD debt owed to telecommunication operators since 2019. However, only four banks complied with this order, with 18 others flouting it.
According to media reports, the telecom regulator, the Nigerian Communications Commission (NCC), has been given the nod to publish the names and approve that telcos withdraw services to them if they fail to settle the debts after two weeks.
Recall that the issue of banks’ multi-billion naira USSD debt to telcos has lingered since 2020, rising from below N40 billion to N57 billion by the end of 2021 and N80 billion in 2022.
But now, the telcos claim the debt has risen above N250 billion and accused the banks of not complying with the repayment plan.
The recent development cannot be unconnected with a December joint meeting between the two regulators, NCC and the Central Bank of Nigeria, which resolved that the banks pay part of the money by December 31 last year and gradually defray the remaining.
A few weeks ago the Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), Gbenga Adebayo, accused the banks of deliberately frustrating any move to resolve the issue and threatened that the only option since the banks have consistently failed to honour the agreements would be to withdraw the support that gives the USSD platform life.
USSD, commonly known as ‘bank transfers’, is done through shortcodes on mobile phones. The support is provided by the telcos.
If the latest approval for telcos to blacklist the 18 banks is carried out, it means that in the next two weeks, all the shortcode services to such banks may be suspended and users will not be able to carry out some online banking services from the comfort of their homes.