The Association of Telecommunications Companies of Nigeria has called on industry regulators to implement clear and practical solutions to resolve the long-standing N250bn debt owed by banks to telecom operators for Unstructured Supplementary Service Data offerings.

Speaking with The PUNCH, ATCON President Tony Emoekpere stressed the need for clear solutions, warning that the debt crisis threatens the progress of financial inclusion in the country.

In Nigeria, USSD is vital for financial inclusion, particularly in rural areas where smartphone penetration and internet access are limited.

It is heavily relied upon by banks, especially for mobile banking services, and is also used for services like airtime top-ups, bill payments, and other telecom services.

“My advice is that it is crucial for this debt to be addressed directly and for a solution to be found. If telcos are not encouraged to support the financial industry and such debts continue to accumulate, it will be detrimental to financial inclusion targets,” he said.

Emoekpere also highlighted the importance of prioritizing USSD traffic and creating incentives for telecom operators to continue supporting the financial sector.

He urged industry regulators, including the Nigerian Communications Commission and the Central Bank of Nigeria, to establish a framework that ensures the timely and equitable resolution of such disputes.

The debt crisis has persisted for years, with telecom operators threatening to suspend USSD services unless payments are made.

While smaller banks have reportedly begun repaying their obligations in installments, tier-one lenders—responsible for the bulk of the debt—are yet to make significant payments, according to the Chairman of the Association of Licensed Telecom Operators of Nigeria, Gbenga Adebayo.

“Some repayments have been recorded, but they fall short of expectations,” Adebayo told The PUNCH in November.

Telecom operators have long argued that the unpaid debts undermine their ability to maintain USSD services, which are critical for financial transactions in Nigeria.

The operators have repeatedly called for the intervention of regulators to facilitate a lasting resolution.

Industry stakeholders warn that failure to resolve the debt crisis could jeopardize efforts to expand financial inclusion, particularly in rural areas where USSD services play a pivotal role.