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<p data-beyondwords-marker="4c8ed388-6354-40e6-9696-0e1c5546ca16">Telecommunication companies are considering the possibility of withdrawing Unstructured Supplementary Service Data (USSD) services to Deposit Money Banks (DMBs). This is a last-gasp effort to recover a longstanding debt of N120 billion related to Unstructured Supplementary Service Data (USSD) services.</p>
<p data-beyondwords-marker="5960f2b4-07a3-4915-b867-71c08183b894">The telcos are also threatening to take legal action against the banks as the ongoing issue, spanning approximately four years, is causing a growing divide between the telecom sector and the financial industry.</p>
<p data-beyondwords-marker="4aad0d10-3d4b-452d-b201-5769047caeef">The Guardian reported that Gbenga Adebayo, the Chairman of the Association of Licensed Telecoms Operators of Nigeria (<a href="https://www.alton.org.ng/index.html" data-type="URL" data-id="https://www.alton.org.ng/index.html" target="_blank" rel="noopener noreferrer nofollow">ALTON</a>), expressed his disappointment that this matter has become politicized.</p>
<p data-beyondwords-marker="d055dedc-6d2c-4864-b046-28f1f4d6b60c">Adebayo emphasized that this is fundamentally a commercial matter, referring to it as a situation of willing buyers and willing sellers. He explained that discontinuing the service would have been appropriate when the banks failed to pay.</p>
<p data-beyondwords-marker="a36aff7c-fe78-42d7-aafa-95b3e0a50329">In his words, “So, when you open commercial agreement to political interference, you get into this kind of problem. That is why we say emphatically that some issues, including price review, should be left to market forces, not to be determined by government, because it is not sustainable.”</p>
<p data-beyondwords-marker="6f6dcffd-e330-4b85-acb7-a67c9dda4ca3">He said political interference prevented the enforcement of commercial terms. He went on to strongly advocate for keeping certain issues, including price reviews, in the hands of market forces rather than government intervention, as it is more sustainable.</p>
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<p data-beyondwords-marker="70d2b10c-8bc0-404d-b1d6-dd4df2ac1cfc">He also mentioned that during ALTON’s recent meeting with the Minister of Communications, Innovation, and Digital Economy, Dr Bosun Tijani, the minister showed sympathy and stressed that responsible behaviour from all parties involved could have prevented the matter from reaching this level.</p>
<p data-beyondwords-marker="cfaf3ee8-06da-4c0c-aed7-1d53b5b1d8fb">He finally noted that the minister agreed to address the issue while warning that if the matter is not resolved promptly, service withdrawals may become inevitable.</p>
<p data-beyondwords-marker="d7e3decf-6618-439d-8a7f-c066edf6bb19">Meanwhile, the Federal Government has initiated an Artificial Intelligence (AI) Research Scheme, with plans to provide N5 million to 45 startups and researchers. The scheme aims to promote the integration of AI for economic advancement.</p>
<p data-beyondwords-marker="b5cb9595-df18-49a7-ac5d-4ae66df6f448"><strong>Read More: <a href="https://technext24.com/2023/08/28/bosun-tijani-national-ai-strategy/" data-type="URL" data-id="https://technext24.com/2023/08/28/bosun-tijani-national-ai-strategy/" rel="noopener noreferrer nofollow">Nigeria’s minister of innovation Bosun Tijani calls for top researchers to join the National AI strategy</a></strong></p>
<h5 id="the-telecom-banking-clash-how-consumers-may-bear-the-brunt" data-beyondwords-marker="4d14fde8-8737-488a-9236-9f221ce0cb63">The telecom-banking clash: How consumers may bear the brunt</h5>
<p data-beyondwords-marker="284e6195-64e3-4e28-a587-7b94e0791869">The ongoing dispute between Nigeria’s telecoms and banks over the Unstructured Supplementary Service Data (USSD) debt has ramifications that extend far beyond corporate boardrooms. It has the potential to affect consumers in various ways, from service disruptions to cost implications.</p>
<p data-beyondwords-marker="8d5697ea-df20-4a49-a26e-8ed2b0078528">One of the most immediate concerns for consumers is the looming threat of service disruptions. USSD technology is integral to many services Nigerians use daily, including mobile banking, airtime top-ups, and accessing essential information from their mobile devices. If the telecom companies decide to take action, such as disabling USSD services due to non-payment by banks, it could disrupt the daily routines of millions.</p>
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 <figure class="aligncenter size-full" data-beyondwords-marker="e2a06450-5a47-40bd-82a6-ac9e10638464"><img width="580" height="236" src="https://technext24.com/wp-content/uploads/2018/08/A-need-for-USSD-Payments.jpeg" alt="A need for USSD Payments" class="wp-image-8989" srcset="https://technext24.com/wp-content/uploads/2018/08/A-need-for-USSD-Payments.jpeg 580w, https://technext24.com/wp-content/uploads/2018/08/A-need-for-USSD-Payments-300x122.jpeg 300w" sizes="(max-width: 580px) 100vw, 580px">
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   Nigeria’s telecoms
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<p data-beyondwords-marker="1215d9e4-4f0b-4ec0-a205-5a1bec1c54b3">Imagine being unable to check your bank balance or make payments through USSD on your basic phone. Simple tasks like recharging your phone through USSD could become arduous if USSD services are disrupted. Consumers, especially the millions who don’t use smartphones may find themselves inconvenienced and potentially left without access to vital financial services.</p>
<p data-beyondwords-marker="fd9d64ed-90b5-4aaa-b4a6-5cec33a0556c">Furthermore, if telecom operators are forced to bear the financial burden of providing USSD services without receiving payment from banks, it is possible that these additional costs may trickle down to the consumer. In a highly competitive market, telcos might have to adjust tariffs or fees to offset their losses, which could lead to higher costs for users.</p>
<p data-beyondwords-marker="1a29f447-d4c6-477b-b763-1aff5316f029">Moreover, the disruption in services can lead to additional costs for consumers. For instance, if people cannot complete mobile transactions and are forced to visit physical bank branches, they might incur transportation expenses and waste valuable time. This can be especially burdensome for those in rural areas or with limited access to banking infrastructure.</p>
<p data-beyondwords-marker="8ab4dc29-c824-4048-8e51-3a52dab4b5d0">The dispute’s potential to disrupt USSD services also raises concerns about its effect on financial inclusion. Many Nigerians, particularly in remote or underserved areas, rely on mobile banking and USSD services for their financial needs. If these services become unreliable or costly, it could hinder financial inclusion efforts, leaving vulnerable populations with limited access to banking services.</p>
<h5 id="a-call-for-revolution" data-beyondwords-marker="db5c1ce6-7369-4279-afdd-97a40efa7c61">A call for revolution</h5>
<p data-beyondwords-marker="40cc1eda-474b-474b-ad49-78f404b4d4de">Consumers and industry stakeholders alike are left hoping for a swift and amicable resolution to this dispute. Both the telecom and banking sectors have critical roles to play in the lives of Nigerians, and any prolonged dispute that negatively impacts consumers would be far from an ideal outcome.</p>
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<p data-beyondwords-marker="35ae83f9-e37a-4688-852c-68646ddc242a">As the situation continues to evolve, it is crucial for all parties involved to consider the impact on consumers and work toward a resolution that safeguards their interests and ensures the continued availability of essential USSD services. After all, it is the consumers who ultimately bear the brunt of this dispute’s consequences.</p>
<p data-beyondwords-marker="9f72d7f7-c282-447e-ae15-ccf4a466620a"><strong>Read More: <a href="https://technext24.com/2023/09/18/ncc-telecom-investment-surges-nigeria/" data-type="URL" data-id="https://technext24.com/2023/09/18/ncc-telecom-investment-surges-nigeria/" rel="noopener noreferrer nofollow">Telecom investment in Nigeria rose from $38b to $77b in Q2 2023</a></strong></p>
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Telcos may sue banks, discontinue USSD services over N120 billion debt

Technext.ng

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