The Association of Licensed Telecoms Operators of Nigeria (ALTON) has provided an update on the ongoing dispute between Nigerian banks and telecom companies regarding the payment of debts for USSD services.
Speaking at a recent forum hosted by telecom operators, and attended by TimesNow.com.ng, ALTON President Gbenga Adebayo expressed satisfaction that banks have been making the expected payments to resolve the issue.
It is worth noting that the USSD debt owed by banks to telecom operators grew from N32 billion in 2019 to nearly N250 billion in 2024.
Interestingly, USSD transactions in Nigeria reached 252.06 million in volume and were valued at N2.19 trillion during the first six months of 2024.
USSD codes were originally designed by telecom companies for airtime recharge and subscription services, but they have become a key tool for expanding financial access in Nigeria.
This technology allows people to carry out banking transactions using SMS on their mobile phones without needing internet access, making it especially helpful in rural areas with weak or no internet connection.
Since 2019, banks and telecom operators have disagreed over unpaid USSD fees collected by the banks.
The dispute raised concerns about the future of the service, leading the NCC to intervene by warning that banks failing to pay could be blacklisted.
The NCC also announced that it would reclaim the shortcodes assigned to nine banks if payments were not settled by January 27.
Mr. Adebayo expressed his gratitude to all stakeholders for their efforts in addressing the debt issue and its impact on the industry.
He noted that the intervention of the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) has played a key role in driving stakeholders toward a resolution.
He said:
Adebayo also commended the NCC for approving a 50% tariff increase for telecom operators, emphasizing that the adjustment was aimed at stabilizing the industry rather than generating profits.
Meanwhile, TimesNow.com.ng earlier reported that the use of an electronic payment system is set to reach a new height as the CBN begins the implementation of its cashless policy
One major structure to achieve this is the use of USSD for transactions since it doesn’t need internet
TimesNow.com.ng has provided a full list of all bank’s USSD codes for quick electronic funds transactions.
Source: TimesNow.com.ng
