N120 billon USSD debt: Telecos firms to take legal action against banks

Telecommunication companies operating within the nation have issued a warning of pursuing legal measures against banks concerning the outstanding N120 billion Unstructured Supplementary Service Data (USSD) debt owed by the banks.

Naija News comprehends that these telcos, who have also raised the possibility of withdrawing USSD services, have collectively agreed that resorting to legal action might be the only viable option given the reluctance of the banks to settle the N120 billion debt.

Gbenga Adebayo, the Chairman of the Association of Licensed Telecoms Operators of Nigeria, conveyed this stance to journalists over the weekend. He emphasized that the banks’ persistent delays in paying the debt have left the telcos with no alternative but to consider legal recourse. Despite extensive discussions between both parties spanning four years regarding the debt settlement, no resolution has been achieved.

Adebayo elucidated that telcos possess the authority to terminate USSD services to banks due to its nature as a commercial agreement. However, there are various political factors impeding this course of action.

He stated, “I believe it is best to suspend the services. Regarding this USSD debt issue, if it becomes necessary for the parties to seek a final resolution through legal means, so be it. Every effort made so far has not yielded the desired results, and it’s become an ineffective process.”

“This commercial agreement has gone sour, and it provides for third-party intervention, either through arbitration or going to court. Parties involved will decide the next steps in accordance with the agreement. Rather than having meetings in Abuja with the minister or the CBN, the parties will follow the stipulations outlined in the agreement.”

“There are several instances where when commercial agreements are exposed to political interference, complications like this arise. That’s why we firmly state that certain matters, including price reviews, should be left to market forces and not subject to government determination because it’s not sustainable.”

Adebayo disclosed that the Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani, has recently intervened in the matter, showing sympathy towards the telcos regarding the outstanding debts. The minister admonished the banks, asserting that they should not anticipate free services, emphasizing that every service rendered comes with its associated costs.