The upcoming disconnection of Unstructured Supplementary Service Knowledge (USSD) of 9 industrial banks could not occur because the affected banks have now begun strikes to settle their debt earlier than the January twenty seventh deadline.
Sources inside the telecom operators confirmed to Nairametrics that among the banks had began paying a part of their debt whereas these which might be but to start out are calling for negotiation opposite to their defiant stand earlier than the sanction was introduced.
That is even because the operators blamed the telecom regulator for dragging its ft in taking motion which led to the buildup of the debt to about N160 billion till late final 12 months when among the banks began paying.
The USSD banking is an SMS-based cellular banking service that permits customers to work together with their bank straight from their cellphones.
Hundreds of thousands of Nigerian bank prospects use the USSD codes to entry monetary providers like transfers, invoice funds, and airtime recharges on each day foundation.
Strikes to avoid wasting income, retain prospects
Apart from the specter of disconnection from the networks, the Nigerian Communications Fee (NCC) in a public discover issued final week mentioned it could additionally withdraw the shortcodes allotted to the 9 affected banks after January twenty seventh.
In line with a prime official of one of many telecom corporations, who wouldn’t wish to be named as a result of he was not licensed to talk, these sanctions, which might have a far-reaching impression on the banks’ income and their customer base, have prompted them to start out making strikes to resolve the problem.
“A few of them have began paying in bits as a result of they know this might impression their income. Those that have refused to hearken to us earlier than are actually calling for negotiation.
“That is what they might have performed lengthy prior to now however as a result of there was no regulatory pronouncement, they by no means took it significantly,” the supply mentioned.
Telecom regulator blamed
Confirming the newest strikes from the banks, one other key stakeholder within the telecom trade, who wouldn’t wish to be named mentioned the USSD debt subject dragged thus far as a result of the telecom regulator was displaying ‘an excessive amount of patriotism’.
“The difficulty we’ve is an excessive amount of patriotism by the regulator. If we had been allowed to take the required actions, the problem wouldn’t have gotten thus far. The banks would have began paying way back.
“It’s the similar drawback we’re having with tariff will increase. Now we have been speaking about the necessity to improve tariffs for years however as a result of the regulator doesn’t wish to ruffle feathers, tariff stays unchanged for over 11 years till it’s changing into a menace to the sustainability of the trade,” he mentioned.
- He famous that different banks not included by the regulator have began paying their debt since final 12 months after a joint decision of the NCC and the Central Bank of Nigeria (CBN) gave them till December 31, 2024.
- In line with him, the 9 banks listed by the NCC have been people who did not adjust to the decision of the NCC and CBN, including that their strikes to settle the debt have been as a result of their income was threatened.
Regulatory efforts
Each the NCC and the CBN had in December final 12 months issued a joint round to the MNOs and the banks on pointers to resolve the debt subject.
The round dated December 20, 2024, signed by the Ag Director of the Funds System Administration Division on the CBN, Oladimeji Taiwo, and the Head of Authorized and Regulatory Companies on the NCC, Chizua Whyte, outlined particular measures for debt settlement.
In line with the round, DMBs are mandated to settle 85% of all excellent invoices issued after the implementation of Software Programming Interfaces (APIs) by December 31, 2024.
- Moreover, all future invoices should even be settled at 85% inside one month of issuance.
- Banks are required to pay 60% of invoices predating the API implementation as full and ultimate settlement.
- Fee plans, whether or not lump sum or installments, have to be finalized between DMBs and MNOs by January 2, 2025.
- The place installment funds are proposed, such plans should encompass equal month-to-month funds, with all funds accomplished by July 2, 2025.
What you must know
MNOs and DMBs have had protracted disagreements in regards to the acceptable USSD pricing mannequin for monetary transactions, transparency of expenses, mode of assortment, and legal responsibility for fee of the excellent and steady service charges.
- In March 2021, a per session worth of N6.98 (together with settling any excellent charges) was agreed upon between the banks and telcos after an intervention by the CBN and NCC.
- Nonetheless, the banks are alleged to have been deducting the N6.98 per session from their prospects with out remitting to the MNOs.
- In its newest transfer following the joint round issued in December final 12 months, the NCC mentioned it had granted approval to the MNOs to disconnect 9 banks in the event that they fail to settle their debt by January 27.
The affected banks embrace Fidelity Bank, First Metropolis Monument Bank (FCMB), Jaiz Bank, Polaris Bank, Sterling Bank, United Bank for Africa (UBA), Unity Bank, Wema Bank, and Zenith Bank.
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