USSD crisis worsens as MTN, others accuse banks of withholding commission

MTN Nigeria, Airtel and other telecommunications companies in Nigeria on Sunday accused commercial banks in the country of charging their customers for Unstructured Supplementary Service Data (USSD) usage without remitting commission to the network providers.

The commission had accumulated to N42 billion debt in over 12 months on the part of deposit money banks, and telecoms companies asked the Central Bank of Nigeria to intervene as banks continue to drag the payment issue.

The Chairman of Association of Licensed Telecommunications Operators of Nigeria (ALTON), Gbenga Adebayo, in a chat with journalists said while banks debited customers for the USSD, they refused to telecoms for offering the service.

While there’s still confrontation between the banks and the telecommunications companies over the charges for each session, Adebayo said the debt is a moral obligation that must be fulfilled by the lenders.

He said: “It has become a moral obligation because the banks used the services, debited their customer accounts and now are not paying the telcos.

“Who do they expect to pay and what were the deductions made from their customers for USSD services, which you and I were debited for? What is the deduction meant for? It’s a debt and the banks have to pay the operators. It’s a moral obligation.

“We are hoping the regulators, CBN and NCC, having intervened by preventing operators from disconnecting the USSD services, will resolve the lingering debt issues.

“They (banks) owe the operators and they will pay. Otherwise, where is the money deducted for USSD services from their customers? You and I know we were charged for USSD transactions; what is the deduction meant for?