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Mobile Network Operators (MNOs) are raising concerns about political interference as a significant contributor to the ongoing deadlock surrounding the outstanding N150 billion debt that banks owe for Unstructured Supplementary Service Data (USSD) usage.
This impasse, which has persisted since 2019, centers on deposit money banks’ refusal to settle their unpaid dues for USSD services provided by telecom operators, resulting in an accumulated debt of approximately N150 billion.
Despite the concerted efforts of regulatory bodies such as the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) to mediate and find a resolution, the banking institutions have remained resolute in their decision not to clear the outstanding obligations.
During the Nigeria Telecoms Indigenous Content Expo (NTICE 2023) held in Lagos, Gbenga Adebayo, the Chairman of the Association of Licensed Telecoms Companies of Nigeria (ALTON), voiced his concerns.
Adebayo highlighted that the situation has been worsened by political interference, transforming what should have been a straightforward business agreement into a prolonged and contentious matter.
He emphasized that the USSD agreement is essentially a commercial contract, similar to a buyer-seller arrangement, wherein payment is expected for the services rendered.
Adebayo underscored that if the buyer, in this case the banks, fails to remit the owed N150 billion, the provision of USSD services logically should cease.
However, this issue has now been entangled in the political sphere, with interventions from both the Ministry and the Central Bank of Nigeria (CBN), resulting in an extended stalemate.
Appeal to the New Communications Minister for Intervention Adebayo appealed to the newly appointed Minister of Communication, Innovation, and Digital Economy, Dr. Bosun Tijani, to protect the autonomy of the telecoms sector under the Nigerian Communications Commission’s (NCC) jurisdiction.
He urged for the regulatory body to be granted the required independence to effectively carry out its responsibilities.
Adebayo also raised concerns about the unsustainable pricing structure for end-users of telecom services, considering the prevailing cost structure, particularly in light of the removal of fuel subsidies.
Warning of Unsustainable Rates He further cautioned that the elimination of electricity subsidies could lead to another crisis, as the current prices have become unsustainable. Adebayo remarked, “We need to adopt a more realistic pricing strategy for the services we provide because the existing pricing is not feasible. We’re offering our services below our production costs.”
Tech Experts’ Migration and Encouragement for Repatriation Addressing the worrisome trend of Nigerian tech experts seeking opportunities abroad, Adebayo implored the new Minister to create a conducive environment that would entice these skilled individuals to return and contribute to Nigeria’s telecom and technology sector’s growth.
He expressed, “We’ve lost many of our experts due to the allure of better financial prospects abroad, but we also lose them due to the conditions here. We urge the new minister to ensure the environment encourages them to work for Nigeria. They might not necessarily return physically; they can work from anywhere, especially now that remote work is possible. The key is for them to contribute to Nigeria’s progress from wherever they are.”
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