The Association of Telecommunications Companies of Nigeria (ATCON) has called on industry regulators, including the Nigerian Communications Commission (NCC) and the Central Bank of Nigeria (CBN), to implement clear and practical solutions to resolve the long-standing N250 billion debt owed by banks to telecom operators for Unstructured Supplementary Service Data (USSD) services.
In a statement to The PUNCH, ATCON President Tony Emoekpere stressed the urgent need to address this issue, warning that the continued accumulation of debt threatens to undermine the progress of financial inclusion in Nigeria.
USSD services play a critical role in financial inclusion, particularly in rural areas with limited smartphone penetration and internet access. They are heavily relied upon for mobile banking services, airtime top-ups, bill payments, and other essential financial transactions.
“My advice is that it is crucial for this debt to be addressed directly and for a solution to be found,” Emoekpere said. “If telcos are not encouraged to support the financial industry and such debts continue to accumulate, it will be detrimental to financial inclusion targets.”
Emoekpere further emphasized the importance of prioritizing USSD traffic and creating incentives for telecom operators to continue supporting the financial sector. He urged regulators to establish a framework that ensures the timely and equitable resolution of outstanding debts.
While some smaller banks have reportedly begun repaying their obligations, tier-one lenders, responsible for the bulk of the debt, have yet to make significant payments, according to Gbenga Adebayo, Chairman of the Association of Licensed Telecom Operators of Nigeria.
“Some repayments have been recorded, but they fall short of expectations,” Adebayo stated.
Telecom operators have repeatedly raised concerns about the impact of unpaid debts on their ability to maintain and improve USSD services. Failure to resolve this crisis could significantly hinder the expansion of financial inclusion, particularly in underserved areas where USSD services remain crucial for accessing financial services.
This issue underscores the need for strong regulatory oversight and collaboration between stakeholders to ensure the sustainable growth and development of the telecommunications and financial sectors in Nigeria.
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