Banks’ USSD debts to telecom firms hit N47 billion
The total debts owed by banks to telecommunications service providers arising from the use of Unstructured Supplementary Service Data (USSD) have risen from N42 billion to N47billion.
USSD is a Global System for Mobile Communications (GSM) protocol that is used to send text messages. USSD is similar to Short Message Service (SMS) but in the banking industry, allows users without a smartphone or data and internet connection to do mobile banking through the use of codes. USSD-based mobile banking can be used for fund transfers, checking account balance, generating bank statement, among other uses.
The huge debts came as a result of deductions made by way of commission by the banks during the course of banking transactions but were never remitted to the telecoms operators that own the infrastructure on which the transactions rode.
An industry source, who spoke on condition of anonymity, lamented the helplessness of the operators to take a decisive action on the issue.
“The debts have grown sharply from N42 billion to N47 billion and it will continue to grow because bank customers will continue to use our platform to carry out convenient banking services. The impact of the N47 billion debt on the industry is significant, especially now that private and public organisations are counting the cost of the COVID-19 pandemic,” the source said.
According to the source, banks are emboldened by the support they are getting from the Central Bank of Nigeria (CBN) Governor, Godwin Emefiele, adding that it is that support that has bred impunity.
“Unfortunately, after the last spat we had the Minister of Communications and Digital Economy, Dr Ibrahim Pantami, Emefiele, the banks CEOs and the MNOs met to settle the matter. The resolution was that the status quo ante be retained.This regulatory intervention has tied the hands of the MNOs because they would not want to be seen as being recalcitrant. The MNOs wish they too could get the type of support the banks are getting,” the source added.
Early last month, the banks denied being indebted to MTN Nigeria and other MNOs for using telecommunication platforms to provide payment services. Read more at: https://thenationonlineng.net/banks-ussd-debts-to-telcos-hit-n47-billion/