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Telecommunication companies are contemplating a potential withdrawal of Unstructured Supplementary Service Data (USSD) services provided to Deposit Money Banks (DMBs) as a final effort to recover a longstanding debt of N120 billion linked to USSD services.
This ongoing issue, spanning approximately four years, has led to a growing divide between the telecom sector and the financial industry. In response to the situation, Gbenga Adebayo, Chairman of the Association of Licensed Telecoms Operators of Nigeria (ALTON), expressed disappointment over the politicization of this matter.
Adebayo emphasized that the root of the issue is commercial in nature, based on transactions between willing buyers and sellers. He stated that discontinuing services would have been a suitable course of action when the banks failed to meet their financial obligations.
In his view, “When you open commercial agreements to political interference, you encounter problems of this nature. This is why we firmly assert that certain matters, including pricing reviews, should be determined by market forces rather than government intervention, as it is more sustainable.”
Adebayo further pointed out that political interference has hindered the enforcement of commercial terms. He strongly advocated for the importance of leaving specific issues, such as price reviews, to be determined by market dynamics rather than government influence.
During a recent meeting with the Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani, ALTON received the minister’s sympathy and acknowledgment that responsible behavior from all parties involved could have averted the current situation.
The minister also pledged to address the issue but cautioned that if it remains unresolved, service withdrawals may become an unavoidable measure.
In the midst of this ongoing dispute, the Federal Government has initiated an Artificial Intelligence (AI) Research Scheme, aimed at providing N5 million to 45 startups and researchers. The scheme seeks to advance economic growth by fostering the integration of AI technology.
Consumers Face Potential Impact:
The ongoing conflict between Nigeria’s telecoms and banks regarding the USSD debt has implications that extend beyond corporate concerns. It has the potential to affect consumers in several ways, ranging from service disruptions to financial implications.
One of the most immediate concerns for consumers is the looming threat of service disruptions. USSD technology plays a pivotal role in many daily services used by Nigerians, including mobile banking, airtime top-ups, and access to essential information via mobile devices. If telecom companies take action, such as disabling USSD services due to banks’ non-payment, it could disrupt the daily routines of millions.
Moreover, if telecom operators must absorb the financial burden of providing USSD services without compensation from banks, it’s possible that these additional costs may indirectly impact consumers. In a highly competitive market, telcos might need to adjust tariffs or fees to offset their losses, potentially leading to increased costs for users.
Furthermore, service disruptions can result in additional expenses for consumers. For instance, if people are unable to complete mobile transactions and are forced to visit physical bank branches, they may incur transportation costs and waste valuable time. This could be particularly burdensome for individuals in rural areas or those with limited access to banking infrastructure.
The dispute’s potential to disrupt USSD services also raises concerns about its impact on financial inclusion. Many Nigerians, especially in remote or underserved areas, rely on mobile banking and USSD services for their financial needs. Unreliable or costly services could impede financial inclusion efforts, leaving vulnerable populations with limited access to banking services.
As the situation unfolds, consumers and industry stakeholders alike are hoping for a swift and amicable resolution to this dispute. Both the telecom and banking sectors play critical roles in the lives of Nigerians, and any prolonged dispute that negatively impacts consumers would be far from an ideal outcome.
In conclusion, it is vital for all parties involved to consider the repercussions on consumers and strive for a resolution that safeguards their interests and ensures the continued availability of essential USSD services, as it is ultimately the consumers who bear the consequences of this dispute.
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