The Association of Licensed Telecommunication Operators of Nigeria on Friday says it members will withdraw Unstructured Supplementary Service Data services to financial service provider due to huge indebtedness.
ALTON said this in a statement on Friday by its Chairman, Gbenga Adebayo, and Head of Operations, Gbolahan Awonuga.
It said that with the concurrence of the Minster of Communications and Digital Economy and the Nigerian Communications Commission, Mobile Network Operators would disconnect Financial Service Providers from USSD services until their huge debt was paid.
The Deposit Money Banks are said to owe telecommunications companies N42 billion for services provided by the mobile network operators through the USSD, NCC said on Thursday.
The Executive Vice Chairman, NCC, Prof. Umar Danbatta, announced this during his lecture at the virtual 2021 edition of The Bullion Lecture.
Danbatta explained that the indebtedness of the banks to mobile network operators had been an issue over time, but stressed that the NCC was working hard to address the concern.
ALTON in the statement on Friday noted that its members were initiating a phased process of withdrawal of USSD services, starting with the most significant debtors within the FSPs, effective March 15.
It said that members had continued to provide USSD services because their primary concern was that millions of Nigerian customers access financial services through USSD infrastructure everyday.
The association said it was given greater importance when customers’ became reliant on these services due to the COVID-19 movement restrictions.
It added: “Unfortunately, due to huge indebtedness and the possibility to agree on a structure for these payments without asking end-users to pay, the government has been forced to intervene.
“The government intervened to ensure that a sustainable cost-sharing solution is agreed on, so that consumers do not get affected in the long-term.”
It said that members deeply regret reaching a point where the withdrawal of these services had become unavoidable, adding that they would remain committed to working closely with the relevant ministries and regulators to resolve the issue as quickly as possible to minimise the disruption to customers.
The statement, however, encouraged subscribers to explore alternative channels with their banks, while the withdrawal of USSD service was in place.
NAN reports that the Minister of Communications and Digital Economy, Dr. Isa Pantami, had issued a letter to the Central Bank of Nigeria seeking a resolution of the ongoing dispute between the banking sector and the telecoms sector over appropriate methodology to use to charge for USSD services.
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