• About
  • Advertise
  • Careers
  • Contact Us
Wednesday, July 2, 2025
  • Login
No Result
View All Result
NEWSLETTER
Tech | Business | Economy
  • News
  • Tech
    • DisruptiveTECH
    • ConsumerTech
    • How To
    • TechTAINMENT
  • Business
    • Telecoms
    • Mobility
    • Environment
    • Travel
    • StartUPs
      • Chidiverse
    • TE Insights
    • Security
  • Partners
  • Economy
    • Finance
    • Fintech
    • Digital Assets
    • Personal Finance
    • Insurance
  • Features
    • IndustryINFLUENCERS
    • Guest Writer
    • EventDIARY
    • Editorial
    • Appointment
  • TECHECONOMY TV
  • Apply
  • TBS
  • BusinesSENSE For SMEs
  • Chidiverse
  • News
  • Tech
    • DisruptiveTECH
    • ConsumerTech
    • How To
    • TechTAINMENT
  • Business
    • Telecoms
    • Mobility
    • Environment
    • Travel
    • StartUPs
      • Chidiverse
    • TE Insights
    • Security
  • Partners
  • Economy
    • Finance
    • Fintech
    • Digital Assets
    • Personal Finance
    • Insurance
  • Features
    • IndustryINFLUENCERS
    • Guest Writer
    • EventDIARY
    • Editorial
    • Appointment
  • TECHECONOMY TV
  • Apply
  • TBS
  • BusinesSENSE For SMEs
  • Chidiverse
No Result
View All Result
Tech | Business | Economy
No Result
View All Result
Home Business Telecoms

USSD: MNOs Receives NCC’s Nod to Disconnect Banks over N120b Debt

by Peter Oluka
May 13, 2023
in Telecoms
0
USSD Debt by banks to MNOs
Disconnect USSD to banks, NCC grants MNOs

Disconnect USSD to banks, NCC grants MNOs

UBA
Advertisements

Mobile Network Operators (MNOs) have received the Nigerian Communications Commission (NCC’s) backing to disconnect Deposit Money Banks (DMBs) over failure to pay the debt owed to operators for Unstructured Supplementary Service Data (USSD) services.

The USSD debt, TechEconomy gathered, amounts to over N120 billion.

The Association of Licensed Telecommunications Operators of Nigeria (ALTON), who disclosed this Friday in a statement stated that the approval was granted because, despite multiparty stakeholder efforts to resolve the situation and prevent any impact on services, the DMBs have continued to incur greater and greater debt, without making the commensurate payments.

Telecom Mast, ALTON, ATCON, Telecom Tax, Tariffs, NCC, Regulator
Advertisements
MTN ADS
Telecom mast

The statement signed by Engr. Gbenga Adebayo and Gbolahan Awonuga, Chairman and Head, Operations respectively, mentioned Minister of Communication and Digital Economy, Prof. Isa Pantami and including the Nigerian Communications Commission, the Central Bank of Nigeria, along with MNOs and DMBs to have intervened by failed.

ALTON, NITDA Bill 2022, USSD Debt
Engr. Gbenga Adebayo, Chairman of ALTON

The Association of Licensed Telecommunications Operators of Nigeria (ALTON) wishes to inform the Nigerian Public that the Nigerian Communications Commission (NCC) has granted approval for our members – Mobile Network Operators (MNOs) – 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 N120 Billion”,

– the statement reads

It added that every time some progress is made, the DMBs come up with reasons to take stakeholders several steps back, in this matter.

Background

It will be recalled 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).

Due to the inability of MNOs and DMBs to reach an agreement on the issues, MNOs in 2021 sought to disconnect DMBs due to the unpaid debts which stood at N42 Billion as at that time. However, Prof. Isa Pantami, the Minister of Communication and Digital Economy, 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.

Other efforts by Pantami, Danbatta and others

Broadband Connection
Prof. Isa Pantami, Minister of Communications and Digital Economy

Professor Isa Pantami, and Professor Umar Danbatta, EVC of the Nigerian Communications Commission (NCC) 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 that meeting.

“Unfortunately, the patriotic intervention of the Hon. 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 statement reads.

What is involved

It is pertinent to note that the contract between MNOs and DMBs on the use of USSDs for banking transactions are strictly commercial and MNOs are at liberty to withdraw the services if it is established that the transaction is unprofitable to them.

Prof. Umar Danbatta, EVC NCC
Prof. Umar Danbatta, EVC of NCC

MNOs have invested billions of naira in expanding their systems to accommodate the USSD needs of DMBs over the years. This has resulted in more Nigerians having access to banking services in addition to enabling banks to trim down costs by requiring fewer branches to service their growing customers. Unfortunately, MNOs are not getting paid for their services and the debt that stood at N42 Billion in 2021 has now risen to over N120 Billion.

It is obvious that the level of debt is unsustainable given the time/value huge cost of the continuous upgrade and operation of the systems and infrastructure dedicated to supporting USSD transactions of DMBs.

Loading

Author

  • Peter Oluka
    Peter Oluka

    Peter Oluka (@peterolukai), editor of Techeconomy, is a multi-award winner practicing Journalist. Peter’s media practice cuts across Media Relations | Marketing| Advertising, other Communications interests. Contact: peter.oluka@techeconomy.ng

    View all posts
0Shares
Tags: ALTONMNOsUSSD
Peter Oluka

Peter Oluka

Peter Oluka (@peterolukai), editor of Techeconomy, is a multi-award winner practicing Journalist. Peter’s media practice cuts across Media Relations | Marketing| Advertising, other Communications interests. Contact: peter.oluka@techeconomy.ng

Next Post
NCS Rallies Experts against Combat Cybercrimes

NCS Rallies Experts to Combat Cybercrimes

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms & Conditions and Privacy Policy.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Recommended

Tinubu -Shettima administration financial system reform, Naira

Nigeria’s Naira Reportedly Exchanges N1600/$1

1 year ago

Paco De La India Visits Nigeria to Promote Bitcoin Adoption

3 years ago

Popular News

    Connect with us

    • About
    • Advertise
    • Careers
    • Contact Us

    © 2025 TECHECONOMY.

    No Result
    View All Result
    • News
    • Tech
      • DisruptiveTECH
      • ConsumerTech
      • How To
      • TechTAINMENT
    • Business
      • Telecoms
      • Mobility
      • Environment
      • Travel
      • StartUPs
        • Chidiverse
      • TE Insights
      • Security
    • Partners
    • Economy
      • Finance
      • Fintech
      • Digital Assets
      • Personal Finance
      • Insurance
    • Features
      • IndustryINFLUENCERS
      • Guest Writer
      • EventDIARY
      • Editorial
      • Appointment
    • TECHECONOMY TV
    • Apply
    • TBS
    • BusinesSENSE For SMEs

    © 2025 TECHECONOMY.

    Welcome Back!

    Login to your account below

    Forgotten Password?

    Retrieve your password

    Please enter your username or email address to reset your password.

    Log In
    Translate »
    This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.