Telecommunications operators under the umbrella of the Association of Licensed Telecommunications Operators of Nigeria (ALTON) have come out to notify telecom users that the Nigerian Communications Commission (NCC) has granted an approval for its members to disconnect Deposit Money Banks (DMBs) if they fail to pay the debt owed to operators for Unstructured Supplementary Service Data (USSD) services which amount to over ₦120 billion.
In a statement signed by the Chairman of ALTON, Engr, Gbenga Adebayo which was sent to Africa Today News, New York on Saturday, the group said the approval was granted because despite multiparty stakeholder efforts to resolve the situation and prevent any impact on services, led by the Minister of Communication and Digital Economy, Prof. Isa Ali Pantami and including the Nigerian Communications Commission, the Central Bank of Nigeria, along with MNOs and DMBs, the banks have continued to incur greater debt, without making the commensurate payments.
Every time some progress is made, the DMBs come up with reasons to take stakeholders several steps back, in this matter.
Recall that MNOs and DMBs have had protracted disagreements concerning the appropriate USSD pricing model for financial transactions, transparency of charges, mode of collection and liability for payment of the outstanding and continuous service fees due to the MNOs (which currently stands at over N120 Billion).
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Due to the inability of MNOs and DMBs to reach an agreement on the issues, MNOs in 2021 sought to disconnect DMBs as a result of unpaid debts which stood at N42 billion as at that time. However, the Pantami intervened and asked the MNOs not to disconnect DMBs as the action will negatively impact on the Digital and Financial Inclusion policy of the Federal Government. The Nigerian Communications Commission (NCC), Association of Licensed Telecoms Operators of Nigeria (ALTON), Association of Telecommunications Companies of Nigeria (ATCON), and Deposit Money Banks (DMB) represented by the Chairman, Body of Bank CEOs subsequently met on 15 March 2021 to discuss indebtedness of DMBs to MNOs for USSD services.
Further to the meeting, CBN and NCC issued a joint press statement on the agreement reached by all stakeholders.
The Minister have made several efforts to get the banks to show good faith and sign an agreement, in the national interest, based on the resolutions reached at that meeting. Unfortunately, the patriotic intervention of the Minister and the NCC have been taken for granted by the DMBs, as two years after, the banks have failed to sign a final agreement.
The group explained that the contract between MNOs and DMBs on the use of USSDs for banking transactions is strictly commercial and MNOs are at liberty to withdraw the services if it is established that the transaction is unprofitable to them.