In a dramatic turn of events, telecom operators in Nigeria have approached the Nigerian Communications Commission (NCC) for approval to suspend bank transfer services via the Unstructured Supplementary Service Data (USSD) platform. The move comes as the telecommunications industry grapples with an estimated N250 billion debt owed by banks for USSD transactions.

Originally developed by the telecom companies to facilitate airtime purchases and subscription services, the USSD platform was later expanded for banking transactions, allowing customers to perform quick financial transfers and other banking services. However, the growing debt burden has placed a significant strain on the telcos, prompting them to take decisive action.

Industry stakeholders have expressed concerns about the impact of suspending USSD services on Nigeria’s banking ecosystem, where millions of customers rely on the platform for seamless transactions, particularly in areas with limited access to the internet. The proposed suspension could potentially disrupt financial inclusion efforts across the country.

Sources within the telecom sector revealed that negotiations between telcos and banks have been ongoing, but with little progress made in resolving the massive debt. The telcos argue that without settlement, it is no longer feasible to continue providing the USSD service without jeopardizing their financial stability.

The NCC is yet to issue an official statement on the request, but experts suggest the decision could create a significant ripple effect in the telecom and banking sectors.