USSD debt payment: Countdown to 27th January deadline

The Nigerian telecommunications sector is currently facing crucial deadlines and important decisions regarding outstanding debts and potential tariff hikes. The countdown is on for nine banks to pay off their debts following a directive from the Nigerian Communications Commission (NCC) to disconnect the Unstructured Supplementary Service Data (USSD) codes of the affected financial institutions. On the other hand, there is a proposed 30-60 per cent telecom tariff hike that is stirring reactions within the industry. Tony Emoekpere, President of the Association of Telecommunication Companies of Nigeria, provided insights on these pressing matters and the broader discussions around infrastructure investment. The ongoing issue of outstanding debts related to the USSD codes has been a bone of contention between banks and telcos. While several banks have already complied with the directive, nine banks are still facing challenges in meeting the deadline. Emoekpere clarified that a joint circular issued by the NCC and the Central Bank of Nigeria (CBN) in December laid out the framework for compliance, indicating that the issue has been a subject of negotiation for several years. He expressed hope that the remaining banks would comply before the deadline to avoid service disruptions for consumers. Emoekpere emphasized the importance of improved communication channels between regulatory bodies and industry players to prevent future issues. He highlighted the need for a well-defined end-user billing system to streamline the settlement of bills and ensure smoother interactions between banks and Mobile Network Operators (MNOs). The industry anticipates that the proposed system will bring an end to the prolonged disputes regarding USSD-related debts. In addition to the USSD debt payment deadline, the sector is also grappling with the prospect of tariff hikes. Conflicting reports have emerged regarding the extent of the proposed increase, with figures ranging from 30% to 100%. Emoekpere underscored the significance of tariff adjustments for the industry's sustainability and growth, noting that the final decision rests with regulators and the government. He stressed the need for a flexible tariff framework that allows for adjustments based on market conditions and competition dynamics. The conversation also touched upon the outlook for investments in the telecom sector. Emoekpere highlighted the positive developments, such as MTN's successful commercial paper programme and the ongoing infrastructure investments in critical national assets. He outlined the importance of resolving key issues, including tariff hikes and broadband expansion, in the first quarter of the year to boost investor confidence. Emoekpere expressed optimism about the sector's prospects for 2025, contingent on resolving current challenges and aligning with government objectives. Overall, the Nigerian telecom sector is at a critical juncture as it navigates complex issues related to debt payments, tariff hikes, and infrastructure investments. Stakeholders are closely monitoring developments to ensure a sustainable and thriving industry landscape in the coming years.