Bank ussd codes in Nigeria: ACAMB Urges Stakeholder to Prioritise Bank Customers Over Debt to Telcos

 

The lingering dispute over a N200 bn debt tied to the use of Unstructured Supplementary Service Data (USSD) platforms has escalated, with the Nigerian Communications Commission (NCC) threatening to disconnect banks from telecom operators. The move, if enforced, could significantly disrupt banking services for millions of Nigerians who rely on USSD for transactions.

The Association of Corporate Affairs Managers of Banks (ACAMB) has called for urgent and constructive dialogue to resolve the impasse. The President of ACAMB, Rasheed Bolarinwa, highlighted the potential impact on vulnerable customers, especially those in rural areas who depend on USSD services for essential banking operations such as fund transfers, balance inquiries, airtime purchases, and loan applications.

“Earnings, however marginal, that accrue to banks also from the use of USSD platforms would be affected somehow, ditto for the telcos.

“ACAMB advocates continued discussions and dialogue as we are of the view that all issues on USSD debt among others, could be resolved amicably without any recourse to disconnection of USSD service to the Banks in the best interest of these two critical sectors and their respective customers who utilize this all-important platform,” Bolarinwa stated.

The NCC has also warned that it may publicly name 18 defaulting banks that have yet to settle their debts, signaling its readiness to enforce regulatory measures if the situation persists. While Access Bank recently confirmed it has cleared its share of the debt, industry insiders revealed that only four banks have settled their obligations so far.

The tension underscores a deeper financial interdependence between the banking and telecom sectors. Bolarinwa pointed out that while Deposit Money Banks (DMBs) owe telcos for USSD services, telcos are also indebted to banks through significant credit facilities. This mutual exposure, he argued, necessitates collaborative problem-solving rather than punitive actions.

“The banking sector and the operators in the telcos ecosystem must continue to explore mutually beneficial ways of resolving any issue that arises in the course of doing business together. After all, the telcos found Nigerian banks an attractive option to increase their borrowing by the end of the 2023 financial year when they found foreign loans expensive following a challenging operating environment and devalued Naira.

“Just as the DMBs are said to owe telcos for USSD billings, so are Telcos also exposed to the Banks with huge credit according to statistics released recently by the regulators which shows sectoral distribution of bank credit to telcos,” Bolarinwa added.

Meanwhile, efforts are reportedly underway to reconcile the debts. Stakeholders from both sectors, along with regulators, are said to be exploring mutually acceptable solutions to avert service disruptions.

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