MTN, Airtel, others move to block bank USSD transfers, airtime purchases

Telecommunications operators in Nigeria have issued a fresh ultimatum to Nigerian banks over an outstanding N250 billion debt tied to Unstructured Supplementary Service Data (USSD) services. The operators, under the umbrella of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), are seeking approval from the Nigerian Communications Commission (NCC) to block USSD services provided to banks if payments are not made promptly. USSD codes are widely used by banks for various services, including transfers, airtime purchases, and balance inquiries.

According to ALTON’s chairman, Gbenga Adebayo, the debt has been a recurring issue for six years, growing significantly from N80 billion in November 2022 to its current level. The telecom operators have been providing USSD services to banks without receiving due payments, resulting in financial strain. Adebayo stressed that although the situation is rooted in a commercial transaction, it has now gained political interest, complicating efforts to resolve the matter.

The USSD service has become a crucial tool for Nigerian banks, enabling transactions without the need for internet connectivity. However, as the debt continues to balloon, telecom companies are preparing to take drastic action. Adebayo emphasized that the current delays and ongoing discussions have gone on for far too long, and it is time for the banks to settle their obligations before USSD services are withdrawn.

Meanwhile, banks have been advising customers on securing their accounts through USSD codes, especially in cases of phone or ATM card theft. As the telecom operators wait for regulatory approval, both industries remain locked in a tense standoff that could disrupt millions of bank transactions across the country if the situation is not resolved soon.