By Ojo Jeremiah Oladipupo (SIWES Student, Efon Poly)
Telecom operators disclosed on Thursday that banks owe them a substantial debt exceeding N200bn for USSD services, as ongoing discussions between the two entities have slowed down.
The Association of Licensed Telecommunications Operators of Nigeria emphasized that the telcos have no intention of forgiving this debt.
ALTON’s Chairman, Gbenga Adebayo, stressed the adverse impact of the outstanding debt on the fintech economy, warning that its resolution is crucial for the sector’s growth.
Adebayo urged a prompt resolution, stating, “There is no discussion about forgiving the debt; payment needs to be made.”
He highlighted that despite ongoing negotiations, the pace is sluggish, and the debt has surged by about 66.67% from N120bn earlier this year.
The longstanding dispute dates back to 2019, with telcos issuing disconnection notices to banks earlier this year. Talks on repayment strategies are still underway, and legal recourse has been considered.
The USSD service, vital for financial inclusion due to the prevalence of feature phones, faces threats to digital financial inclusion if the payment quagmire persists.
Adebayo also revealed that telcos now contend with 52 different taxes and levies, hindering their operations and growth.
The Executive Vice Chairman of the Nigerian Communications Commission, Dr. Aminu Maida, urged telecoms companies to improve quality of service and experience, encouraging innovation despite industry challenges.
The commission is also in talks with Original Equipment Manufacturers to foster job growth in the country.
