FG To Blacklist 18 Banks Owing Telcom Almost N200bn On USSD

There are indications that the Federal government will tomorrow list out names of 18 banks owing almost N200 billion to Nigerian telecom operators on Unstructured Suplementary Service Data (USSD) and remained adamant towards settling it for several years.

The reason for the public disgrace seems to be for the telcos to stop offering them services that enable their customers to conveniently do online banking.

It was gathered that the telecom regulator, the Nigerian Communications Commission (NCC) has been given the nod to publish the names and approve that telcos withdraw services to them if after two weeks they fail to settle the debts.

It will be recalled that the issue of banks’ multi billion naira USSD debt to telcos has lingered since 2020, rising from below N40 billion to N57 billion by the end of 2021 and N80 billion in 2022.

But now, the telcos claim the debt has risen above N250 billion and accused the banks of not complying with the repayment plan.

The recent development cannot be unconnected with a December joint meeting between the two regulators, NCC and the Central Bank of Nigeria which resolved that the banks pay part of the money by December 31, last year and defray the remaining gradually.

However, it was gathered authoritatively that only four banks complied with the directive, while 18 others are still adamant.

Similarly, when the matter brewed heavily a few years ago, the National Assembly, Central Bank of Nigeria, CBN, and the Nigerian Communications Commission, NCC, waded in and also generated such a gentleman’s agreement, which gave the banks leverage to defray the debts gradually.

However, that did not also happen as the banks allegedly reneged.

A few weeks ago the Chairman, Association of Licensed Telecommunications Operators of Nigeria (ALTON), Gbenga Adebayo, accused the banks of deliberately frustrating any move to resolve the issue and threatened that the only option, since the banks have consistently failed to honour the agreements, would be to withdraw the support that gives the USSD platform life.

USSD, commonly known as ‘bank transfers’, is done through short codes on mobile phones.

The support is provided by the telcos.

If the latest approval Vanguard gathered that telcos will be given, to blacklist the 18 banks is carried out, it means that in the next two weeks all the short code services to such banks may be suspended and users will not be able to carry out some online banking services from the comfort of their homes (