USSD SHOWDOWN: Telcos to Suspend Services for 18 Banks Over N200bn Debt

Telecommunication companies in Nigeria are set to suspend USSD services for 18 banks due to their failure to settle a whopping N200 billion debt. This move is being directed by the Nigerian Communications Commission (NCC) and follows a recent order by the Central Bank of Nigeria (CBN) and the NCC for banks to pay off their USSD debt, which has been accumulating since 2019.

Only four banks have complied with this order, leaving 18 others to face the consequences. The NCC has given the banks a two-week ultimatum to settle their debts, after which USSD services will be suspended.  This means that customers of these banks will no longer be able to use shortcode services for online banking transactions.

The debt, which initially stood at N40 billion in 2020, has risen to over N250 billion, with telcos accusing banks of not complying with the repayment plan. 

The Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), Gbenga Adebayo, has expressed frustration with the banks' lack of cooperation, stating that they are deliberately frustrating efforts to resolve the issue.

If the suspension goes ahead, it will undoubtedly cause disruptions to online banking services, affecting millions of Nigerians who rely on USSD for financial transactions.