MTN, Airtel, others begin receiving for N250 billion debt

• Nigerian telecom companies are making some progress on paying back the N250 billion USSD debt
• However, most of the tier-one lenders of the loan have yet to make any significant payments
• Chairman of ALTON underlined that cooperation between the CBN and NCC is necessary for telecoms sectors

Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

With smaller banks starting to pay their debts, telecom providers in Nigeria are making some headway in repaying the N250 billion debt associated with Unstructured Supplementary Service Data offerings.

Photo Credit: Contributor
Source: UGC

The majority of the debt's tier-one lenders, however, have not yet made any sizable payments.

This revelation was disclosed to The PUNCH on Thursday by Gbenga Adebayo, the Chairman of the Association of Licensed Telecom Operators of Nigeria.

Although some repayments have been documented, he noted, they do not meet expectations.

“We are seeing payments from smaller players, but the big banks, which owe the most, have not been forthcoming,” Adebayo said on a call.“We are now waiting for intervention from regulators, including the Central Bank of Nigeria and the Nigerian Communications Commission, to resolve the issue,” he stated.

Adebayo emphasized that in order to protect the financial and telecommunications industries, the CBN and NCC must work together.

“The financial and digital economy depend on this service. It’s critical for regulators to step in swiftly to ensure resolution,” he said.

In the past, mobile operators have threatened to stop USSD services due to outstanding charges, but these actions were halted after government officials intervened.

This comes after a protracted disagreement over USSD service fees between banks and telecom providers. Following regulatory permission, telecom companies started charging N6.98 per transaction in 2021.

Telcos seek approval to deactivate USSD service

Legit.ng reported that The Association of Licensed Telecommunications Operators of Nigeria (ALTON) has revealed that telecommunication companies are pushing for regulatory approval from the Nigerian Communications Commission to withdraw Unstructured Supplementary Service Data services(USSD) of Nigerian banks.

ALTON revealed that the banks have owed over N250 billion for services provided in the last six years.

The USSD service provides airtime and subscription services and has been adopted in the banking sector because it does not require an internet connection.

Source: Legit.ng