Service Providers Vows To Stop USSD Services Over N80bn Debt

The Association of Licensed Telecommunications Operators of Nigeria (ALTON) has vowed to stop rendering Unstructured Supplementary Service Data (USSD) services to banks until the N80 billion debt issue is resolved.

According to the ALTON President, Gbenga Adebayo, who spoke at an ICT conference in Lagos on Thursday, said the debt has now risen to N80 billion from N42 billion earlier this year, and unless they start paying up we would stop rendering the USSD service to banks

Gbenga Adebayo, ALTON President

Read Also: 9.5m Nigerians use *894# USSD banking service — First Bank

 

Adebayo noted that despite the government’s intervention in the matter, many banks were not cooperating as regards paying their debt.

“Some banks are responding while others are not. We are nearing that time when we have no choice but to discontinue the provision of services to banks.

“I think it is dishonorable that our colleagues in that sector know that they have an obligation to service providers and are shying away from it.

“Banks deduct charges from their customers but refuse to pay telecom operators. You don’t expect us to keep rendering services when you don’t pay,” the ALTON president said.

He added that the irony of the situation was that if it was the other way round, you could not owe the bank a cent.

The telecommunication operators had threatened to withdraw their USSD services to financial institutions from March 15, 2021, due to the N42 billion accumulated debt.

However, following intervention by the Central Bank of Nigeria (CBN) and the Nigerian Communication Commission (NCC), the planned action was shelved.

Read Also: MTN restores suspended USSD services

Both parties (the telcos and the banks) went into a meeting with the federal government representatives.

As a fallout of the meeting, the CBN and NCC announced the introduction of N6.98 per transaction as new charges for customers using the USSD services with effect from March 16, 2021.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.