In a significant financial development, Nigerian banks have finally settled their ₦160 billion debt owed to telecom operators for Unstructured Supplementary Service Data (USSD) services. This move, which comes after prolonged negotiations and disputes, is expected to restore confidence in digital banking services and improve customer experience across the country.
What Is USSD and Why Is It Important?
USSD, short for Unstructured Supplementary Service Data, is a technology that allows bank customers to carry out basic transactions — such as transfers, airtime purchase, and balance checks — using simple short codes on their mobile phones. It is especially popular in areas with low internet penetration or among people who use basic (non-smart) phones.
For millions of Nigerians, USSD banking is a lifeline to financial services, particularly in rural communities and among the unbanked population.
The Debt Problem: How Did It Start?
Over the past few years, telecom operators like MTN, Airtel, Glo, and 9mobile provided the USSD infrastructure that banks used to offer financial services. However, the issue began when banks reportedly failed to pay telecom companies for these services. The debt piled up, eventually reaching a staggering ₦160 billion.
This led to tension between the banking and telecom sectors, with telecoms threatening to withdraw USSD access for banks, which could have severely disrupted digital banking operations nationwide.
A Long-Awaited Resolution
After numerous talks involving the Central Bank of Nigeria (CBN), the Nigerian Communications Commission (NCC), banks, and telecom companies, the banks have now cleared the ₦160 billion debt. This resolution is seen as a win for both sectors and, more importantly, for the average Nigerian who relies on USSD services daily.
What This Means for Customers
With the debt finally paid, Nigerians can expect uninterrupted USSD services going forward. It also paves the way for more innovation in mobile banking, as telecom operators can now fully support and invest in the infrastructure required to power these services without financial strain.
Additionally, the resolution could lead to improved service quality, faster transactions, and fewer issues related to failed transfers or unresponsive codes.
Impact on Banks and Telecom Companies
For banks, clearing the debt means maintaining strong relationships with telecom providers and preserving customer trust. It also positions them better to expand their financial services to remote locations.
Telecom operators, on the other hand, can now recover costs they had carried for years. This gives them the confidence to continue supporting financial institutions while planning for further investment in technology and service delivery.
The Role of Regulatory Bodies
The Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) played crucial roles in resolving the matter. Their intervention helped ensure that the disagreement did not negatively impact millions of Nigerians who rely on USSD banking.
Their involvement also shows the importance of regulatory oversight in maintaining harmony between industries that serve the public in different but interconnected ways.
Looking Ahead: What’s Next?
Now that the debt is cleared, all eyes will be on how the banks and telecoms work together to improve USSD and other digital financial services. There’s also growing interest in whether charges for USSD transactions might change or become more customer-friendly.
In the long term, this resolution could encourage more financial inclusion, especially among those who still find mobile apps and internet banking challenging. The settlement of the ₦160 billion USSD debt marks a positive turning point for Nigeria’s digital economy. With both banks and telecoms back on good terms, customers can now look forward to better and more reliable USSD services. It’s a reminder that when industries work together and settle disputes, everyone — especially the everyday Nigerian — benefits.
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Written By Fortune Davidson
