Telecommunications operators in Nigeria have signaled their intent to suspend Unstructured Supplementary Service Data (USSD) services within two weeks due to an unresolved N250 billion debt owed by Deposit Money Banks (DMBs).
The debt, accumulated from non-remittance of USSD charges, has sparked tensions between telcos and banks, raising concerns about the future of USSD-based banking transactions. This development could disrupt Nigeria’s digital financial ecosystem, with the Central Bank of Nigeria (CBN) reporting N2.19 trillion worth of USSD transactions from 252.06 million transactions in the first half of 2024.
On average, USSD transactions account for N12 billion in daily activity, making them a critical component of Nigeria’s financial infrastructure. However, the potential suspension poses a significant threat to the country’s financial inclusion goals, particularly for underserved and rural populations who rely heavily on USSD for access to banking services.
Industry stakeholders like The Association of Licensed Telecommunications Operators of Nigeria (ALTON) has consistently called for prompt resolution of the debt issue, urging banks to honor their financial obligations.
If the suspension proceeds, the impact on Nigeria’s economy could be profound, disrupting the flow of funds across the banking and telecommunications sectors.
