CBN Reacts to USSD Disconnection over N120 Billion Debt

The Central Bank of Nigeria, CBN has said that the current dispute between banks and Telcos over non-payment of accumulated Unstructured Supplementary Service Data, USSD debt is due to technical issues regarding the definition of a successful transaction from their perspective.

This disclosure contained in a statement issued by the CBN Spokesperson, Dr. Isa Abdulmumin, who explained that the apex bank was on top of the situation, blaming the dispute on technical issues regarding the definition of a successful transaction from a bank and telco perspective.

Recall Business Remarks reported that NCC has given the telecom companies in Nigeria approval to withdraw their USSD services to the banks, following growing debt, which has accumulated to over N120 billion.

Also Read: NCC Grants Telcos Approval to Disconnect Banks over N120 Billion USSD Debt

Speaking on the intervention, the Ag Director, corporate communication, Dr Abdulmumin Isa said the Apex Bank is very much aware of the protracted dispute between the banks and telcos and has been engaging all stakeholders to ensure an amicable resolution.

He said: ‘Indeed, it was due to the direct intervention of the CBN (or CBN Governor) in March 2021. that a per session price of N6.98 (including to settle any outstanding fees) was agreed upon between the banks and telcos. As far as we are aware, since 2021, DMBs continue to collect the USSD fees and remit the same on behalf of the telcos based on that agreement.

“We understand the latest dispute concerns technical issues regarding the definition of a successful transaction from a bank and telco perspective.

“USSD fees are charged by DMBs using an automated system which bills the customer for a successful transaction only after a banking service is consumed. For the Telcos, a successful transaction happens once the customer has dialled the USSD short-code which may not lead to the consummation of a banking service. Whilst Such truncated transactions are not registered on the DMBs collection platform and thus not billed to bank customers, telcos expect the DMBs to charge customers once the short-code is dialed, whether or not a financial transaction is consummated.”

“As far as we are aware, since 2021, DMBs continue to collect the USSD fees and remit same on behalf of the telcos based on that agreement. We understand the latest dispute concerns technical issues regarding definition of a successful transaction from a bank and telco perspective” he added.

However, the telcos say the banks are reducing to acknowledge the debt, hiding on technical misunderstanding to abdicate their responsibilities and breach business agreement.

Not backing out this time, the Chairman of Association of Licensed Telecom Operators (ALTON) in Nigeria said depending on the terms of agreement the telcos have with individual banks, some got two days notice, while some got one week and some others, one month notices. He added that the notice was to give them opportunity to organize themselves and settle their bills or risk total withdrawal of USSD services.