Telcos set to halt services over N50bn USSD debt—MTN

Mobile network operators (MNOs) may, subject to regulatory approval, stop supporting the use of the service on the network for banking operations if the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) do not address the unmanageable debt of approximately N250 billion owed to MNOs as a result of the use of the Unstructured Supplementary Service Data (USSD). 

Text messages are sent via the USSD protocol, which is part of the Global System for Mobile Communications (GSM). Cash transfers, balance enquiries, service payments, and other financial transactions can be started with it.

MTN CEO Karl Toriola responded to enquiries yesterday from fellows of the Media Innovation Programme (MIP), which is supported by MTN Nigeria and in collaboration with Pan Atlantic University, Ibeju-Lekki, Lagos, who were inspecting MTN's important facilities in the city. He said the debt has been mounting and is becoming unmanageable for the operators. 

The operators will have to seek regulatory approval to stop allowing commercial banks to conduct transactions on the platform if the impasse is not resolved, according to Toriola, who expressed optimism that the new CBN governor, Yemi Cardoso, and the Executive Vice Chairman, NCC, Dr. Aminu Maida, will resolve it quickly.

“MTN and the entire industry are in a dire situation. MTN is loss making because of naira devaluation. The fundamentals need to change. Tariffs have to be changed,” he said, adding that inflation has continued to go up, affecting the prices of commodities, including foodstuffs and services.

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