By
Telecom operators in Nigeria have raised alarm over the growing debt of about N250 billion owed by banks for using Unstructured Supplementary Service Data (USSD) services. They have warned that if this issue is not resolved, they may have no choice but to suspend USSD services used for banking transactions.
USSD is an important technology for banking, allowing Nigerians to carry out transactions like checking account balances, transferring funds, and paying bills through their mobile phones. However, telecom companies say the rising debt has become a major problem that threatens their operations.
Urgent Action Needed
MTN Nigeria’s CEO, Karl Toriola, spoke about the growing debt during a session at the Media Innovation Programme (MIP) in Lagos. He said that unless the issue is fixed, the telecom sector could be in serious trouble. He is calling for urgent intervention from the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) to create a sustainable payment system.
“With new leadership at CBN and NCC, we hope this issue can be resolved quickly,” Toriola said. “If not, we may have no choice but to suspend USSD services for banking. The debt can’t continue to grow.”
Economic Struggles Make Things Worse
Toriola also pointed out the difficult economic conditions that are adding pressure to telecom companies. These include the falling value of the naira, rising inflation, and higher costs for diesel and electricity.
“The telecom sector is facing tough times. MTN is losing money because of the naira devaluation. If tariffs don’t adjust to the current economic situation, the sector could collapse,” he warned.
The telecom industry has also seen its contributions to corporate taxes drop as it faces these financial challenges. Toriola stressed that without quick action, telecom companies may not be able to keep up with the costs of running the infrastructure that supports services like USSD.
Other Voices in the Industry
Airtel Nigeria’s CEO, Carl Cruz, shared similar concerns, citing the rapid devaluation of the naira—from N420 to N1,500 per dollar in just a few months. “The telecom industry depends on imported equipment, and the naira devaluation is making it harder to invest,” Cruz said.
Call for Government Support
The Global System for Mobile Communications Association (GSMA) has also joined calls for a tariff adjustment to ensure telecom services remain sustainable.
Suspending USSD services would severely impact banking for millions of Nigerians, making it harder for them to access financial services. Both the banking and telecom sectors are now waiting for a solution.
Toriola also urged the government to support the telecom industry, warning against the same mistakes that led to the collapse of NITEL, Nigeria’s former national telecom company.
“We cannot afford to let the telecom sector go the way of NITEL,” he said.
The telecom operators are hoping for a quick resolution to avoid further disruption.
