Telcos demand plan to resolve N250bn USSD debt

The Affiliation of Telecommunications Corporations of Nigeria has referred to as on trade regulators to implement clear and sensible options to resolve the long-standing N250bn debt owed by banks to telecom operators for Unstructured Supplementary Service Information choices.

Talking with The PidomNigeria, ATCON President Tony Emoekpere harassed the necessity for clear options, warning that the debt disaster threatens the progress of monetary inclusion within the nation.

In Nigeria, USSD is important for monetary inclusion, notably in rural areas the place smartphone penetration and web entry are restricted.

It’s closely relied upon by banks, particularly for cell banking providers, and can be used for providers like airtime top-ups, invoice funds, and different telecom providers.

“My recommendation is that it’s essential for this debt to be addressed instantly and for an answer to be discovered. If telcos should not inspired to assist the monetary trade and such money owed proceed to build up, will probably be detrimental to monetary inclusion targets,” he stated.

Emoekpere additionally highlighted the significance of prioritizing USSD site visitors and creating incentives for telecom operators to proceed supporting the monetary sector.

He urged trade regulators, together with the Nigerian Communications Fee and the Central Bank of Nigeria, to determine a framework that ensures the well timed and equitable decision of such disputes.

The debt disaster has endured for years, with telecom operators threatening to droop USSD providers until funds are made.

Whereas smaller banks have reportedly begun repaying their obligations in installments, tier-one lenders—accountable for the majority of the debt—are but to make vital funds, in keeping with the Chairman of the Affiliation of Licensed Telecom Operators of Nigeria, Gbenga Adebayo.

“Some repayments have been recorded, however they fall wanting expectations,” Adebayo advised The PidomNigeria in November.

Telecom operators have lengthy argued that the unpaid money owed undermine their potential to keep up USSD providers, that are crucial for monetary transactions in Nigeria.

The operators have repeatedly referred to as for the intervention of regulators to facilitate an enduring decision.

Business stakeholders warn that failure to resolve the debt disaster might jeopardize efforts to develop monetary inclusion, notably in rural areas the place USSD providers play a pivotal position.