Telcos seek regulatory approval to withdraw USSD services from banks

Telecom operators in Nigeria are seeking regulatory approval from the Nigerian Communications Commission to withdraw Unstructured Supplementary Service Data services from banks due to an outstanding debt of over 250 billion naira. The debt has been a point of contention between the telcos and banks, with the amount increasing steadily over the years. The issue came to a head when the NCC allowed the telcos to withdraw their USSD services from banks, leading to the current standoff. Frankly Upeters, Assistant Vice President at PAC Capital Limited, discusses the details and implications of this situation. Upeters highlights the interconnected nature of banking and financial services in Nigeria, stressing the need for collaboration and compromise between telcos and banks to drive the economy forward. He suggests that failure to resolve the issue could lead to further escalation in debt levels, potentially reaching 500 billion naira by next year. While Upeters remains optimistic that a resolution will be reached, he acknowledges that legal complications could prolong the process. The profitability of telecom businesses in Nigeria is under pressure due to factors such as multiple taxes and regulatory challenges. Upeters emphasizes the importance of government support in easing these burdens and creating opportunities for market growth. He also underscores the necessity for continuous investment in infrastructure to improve service quality and attract new players to the market. Upeters addresses concerns about 5G connectivity, internet affordability, and mobile penetration, highlighting the need to enhance connectivity to support emerging technologies and drive digital innovation. The conversation with Upeters sheds light on the complex dynamics between telcos, banks, and the government in Nigeria's telecommunications sector, underscoring the challenges and opportunities in the industry.