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CBN and NCC resolve the N150b USSD debt Impasse.
CBN and NCC resolve the N150b USSD debt impasse.
The Nigerian Communications Commission (NCC), working with the Central Bank of Nigeria (CBN), has finally resolved the lingering debt issue between mobile telecom operators (MNOs) and deposit money banks (DMBs).
The debt currently estimated at about N150 billion arose out of the use of unstructured supplementary service data (USSD) by customers of DMBs to make financial transactions.
Giving his key note at the Telecom Executives and Regulators Forum held at the Oriental Hotel, Lekki, Lagos, yesterday, the Executive Vice Chairman and CEO of the NCC, Prof. Garba Danbatta, said the CBN, under the leadership of its acting governor, has ended the debt nightmare of the MNOs.
The forum, with Success Factors and Barriers to National Broadband and Digital Economy Aspirations as the theme, was organized by the Association of Telecom Companies of Nigeria (ALTON).
He said a meeting was convened with the MNOs, banks’ CEOs, and other stakeholders with the CBN helmsman where the apex bank acknowledged the accumulated debt and the need to pay up while charges for services would henceforth be paid for.
He insisted that customers should not be billed; rather, it should be corporate billing, adding that he hoped the agreement reached by all the parties would be implemented to the letter.
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Prof. Danbatta said the ICT sector’s contributions to the country’s gross domestic product (GDP) have reached 19.5 percent, while that of the telecom sector is 16 percent. He said the high percentage contribution of the ICT sector to the GDP makes the sector second only to the agricultural sector.
He also said the Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, has acknowledged the high cost of doing business in the telecom sector, adding that for the first time since the sector was liberalized, big operators posted losses while fringe players are being seriously stifled. He said it does not make any business sense not to factor the cost of producing a product into the final price of the product.
CBN and NCC resolve the N150b USSD debt impasse.
He therefore said a little hike in tariffs within the range approved by the Commission would not be a bad idea.
Prof. Danbatta said barriers such as multiple taxes, high right of way (RoW), and others were still suffocating the industry, adding that it would have done better had the barriers been tackled. According to him, taxes in the telecom sector have risen from 41 to 46.
He commended President Bola Tinubu for suspending the implementation of the five per cent excise duty imposed on the telecom sector under the previous administration and appealed to the President to cancel the tax in its entirety because it will increase the yoke on the neck of the sector.
He also expressed optimism on the attainment of 50 per cent broadband penetration this year in line with the target of the National Broadband Plan.
He said: “Our nation’s vast and diverse geography presents challenges in deploying broadband infrastructure, particularly in remote, rugged and swampy terrains. This presents a major obstacle to rolling out broadband infrastructure.
“The substantial upfront costs of building broadband infrastructure can be a barrier to investment, particularly in a country with economic disparities.
“Multiple regulation and bureaucracy can hinder investment and slow down deployment. Simplifying and streamlining regulations will provide the clarity and confidence needed to attract investments and foster competition.”
Prof Danbatta said the urban-rural digital divide is a major challenge to ensuring equitable access to the digital economy. Bridging this divide requires targeted initiatives for underserved communities.
“A significant portion of Nigeria’s population lacks digital skills and awareness. This can limit the adoption and effective use of digital services,” he said.
On security concerns as the nation advanced in the use of digital tools, he said: “As digital adoption increases, so does the risk of cyber-attacks and data breaches. Strengthening our cybersecurity measures will protect our citizens’ data, bolster consumer trust, and secure our digital infrastructure.”
According to him, frequent power outages and unreliable electricity infrastructure can disrupt digital services, insisting that addressing this challenge will be key to maintaining uninterrupted connectivity.
