The NCC remains committed to ensuring that consumers, telcos, and banks can continue to benefit from a seamless financial service ecosystem,”
– Dr. Adinde
By Abdulrahman Aliagan, Abuja
Navigating a financial crossroad, The Nigerian Communications Commission (NCC) has once again stepped into the fray to protect the interests of Nigerian consumers and industry stakeholders. This time, it’s tackling a critical dispute threatening the nation’s financial ecosystem: the N250 billion Unstructured Supplementary Service Data (USSD) debt owed by banks to telecommunications operators.
This escalating debt dispute has become a potential disruptor for millions of Nigerians who rely on the USSD platform for daily banking transactions. If unresolved, it risks undermining financial inclusion and the broader digital economy.
A Crisis Years in the Making
The crisis originated in 2019 when telecom operators proposed a charge of N4.50 per 20 seconds for USSD services. This was intended to recover operational costs after years of providing the service for free. However, banks pushed back, arguing that the new charges would impose significant costs on consumers. The impasse has since left a growing pile of unpaid debts and strained relations between two vital industries.
Recently, MTN Nigeria’s CEO, Karl Toriola, warned that telecommunications operators might have to suspend USSD services to banks if the debts remain unsettled. The Association of Licensed Telecommunications Operators of Nigeria (ALTON) echoed these concerns, highlighting the financial unsustainability of the current arrangement.
NCC: A Mediator in Action
The NCC has taken decisive steps to prevent this conflict from spiraling into a full-blown crisis. Recognizing the potential fallout for millions of consumers and Nigeria’s financial inclusion agenda, the Commission has initiated a dialogue with the Central Bank of Nigeria (CBN) to mediate a resolution.
According to Dr. Ikechukwu Adinde, Director of the NCC’s Consumer Affairs Bureau, the Commission is optimistic about brokering a settlement that balances the interests of all stakeholders. “The NCC remains committed to ensuring that consumers, telcos, and banks can continue to benefit from a seamless financial service ecosystem,” Adinde emphasized during a recent training for journalists.
Pioneering Transparency and Consumer Trust
In addition to its mediation efforts, the NCC has announced plans to implement reforms designed to enhance transparency within the telecommunications sector. These measures include compelling operators to provide clear and detailed information on tariffs, billing rates, and service terms.
By prioritizing transparency, the NCC aims to foster accountability, empower consumers, and reduce the likelihood of future conflicts between stakeholders in Nigeria’s fast-growing digital economy.
A Test for Collaboration
The USSD crisis underscores the interdependence of Nigeria’s telecommunications and financial sectors. Both industries play critical roles in advancing financial inclusion, especially in underserved rural areas. A disruption to USSD services would disproportionately impact vulnerable populations and reverse gains made in expanding access to banking services.
As discussions between the NCC, CBN, banks, and telecom operators continue, a sustainable solution is crucial. The NCC’s proactive intervention reflects its dedication to ensuring stability and fairness in a rapidly evolving landscape.
A Shared Responsibility
The resolution of the USSD debt crisis is not just a test of leadership for the NCC; it is also a challenge to all stakeholders to prioritize collaboration over conflict. With the Commission paving the way for transparency and accountability, there is hope that this crisis will be resolved amicably, setting a positive precedent for future disputes.
For now, Nigerians await the outcome of these negotiations, hopeful that the NCC’s efforts will preserve the integrity of a financial platform they rely on daily.
