Banks Clear N300bn USSD Debt over NCC Push
The Association of Licensed Telecommunications Operators of Nigeria (ALTON) has confirmed that commercial banks have fully cleared the nearly N300 billion debt owed telecom operators for Unstructured Supplementary Service Data (USSD) services, bringing an end to a four-year industry dispute.
Chairman of ALTON, Engr. Gbenga Adebayo disclosed this on Thursday during an official visit to the Chairman of the Nigerian Communications Commission (NCC), Mr Idris Olorunnimbe.
Adebayo said the protracted debt crisis was resolved through the intervention of the Commission under the leadership of its Executive Vice Chairman, DrDrminu Maida, describing the development as a major stabilising milestone for the telecom and digital finance ecosystem.
The dispute, which had lingered for over four years, was marked by accusations and counter-accusations between banks and telecom operators, raising concerns over systemic risks to the sector.
According to Adebayo, the debt burden had grown to nearly N300 billion, threatening the stability of the industry.
“When Dr Drida assumed office, he inherited significant industry challenges. One of the most difficult was the USSD debt crisis, a debt burden that grew over four years to nearly N300 billion. It had become a systemic risk to our sector and the digital financial ecosystem.
“Through firm leadership, structured engagement, and decisive coordination, Dr Maida and his team resolved this issue. Today, there is no outstanding USSD debt. The ecosystem has fully migrated to end-user billing. What was once a looming crisis has been converted into a sustainable framework,” he said.
He also commended the Commission for approving a 50 per cent tariff increase last year, noting that it marked a turning point for the industry after 13 years of static pricing despite rising inflation, currency volatility, ageing infrastructure and escalating energy costs.
“Our tariffs fell significantly below cost. Investment slowed. Networks became strained. The sector was approaching a stage where service rationing was becoming a real possibility,” Adebayo said, adding that the tariff review helped avert a potential industry collapse.
He noted that operators are gradually returning to profitability, network stability has improved, and capital expenditure planning has resumed.
However, he stressed that telecom operators continue to grapple with persistent fibre cuts nationwide, as well as multiple and excessive taxes and levies imposed by some state governments.
Responding, Olorunnimbe assured operators of the Commission’s commitment to sustaining the sector’s growth.
“It is very important that this sector, which has been working for over two decades and continues to be a flagship sector for our country, continues to work.
“We will do what needs to be done. The channels of communication between the Commission and us are very open. We will not close those channels. In fact, we will widen them so that we can hear you better and react faster. Those issues concern us as well, and we will continue to deepen the workings,” he said.
