Federal government has failed to intervene in the unstructured supplementary service data (USSD) debt crisis between the telecom operators and the financial banks in the country.

Karl Toriola, chief executive officer (CEO), MTN Nigeria, said the banks might be disconnected from the USSD platform due to debt arising from the use of the quick codes by their customers, which has now reached N250 billion.

USSD, also known as quick or feature codes, is a global system for mobile communications (GSM) protocol that is used to send text messages and initiate financial transactions such as cash transfers, balance inquiries, payments for services and others.

As at Tuesday, Dr. Bosun Tijani, minister of Communications and Digital Economy, and the Nigerian Communications Commission (NCC) were taciturn.

But Toriola said mobile network operators (MNOs) might, subject to regulatory approval, suspend supporting the use of the service on the network for banking operations, as the debt had continued to pile up and was becoming unsustainable to the operators.

According to Toriola, the increasing debt is unsustainable for telecommunications companies (telcos).

Also speaking, Engr. Gbenga Adebayo, chairman, Association of Licensed Telecom Operators of Nigeria (ALTON), described the services provided by telecommunication firms for banks’ customers to use USSD as commercial and not for social purpose

“The debt has been long overdue and the banks who owe the telcos have more or less turned us to beggars on getting them to pay our debt, so there is no choice. If the regulators do not resolve the matter, what has been foreseen will happen, the services will be withdrawn. We are leaving to the CBN to resolve, if it is not able to resolve this matter, there will be no choice than to withdraw USSD from the banks,” he added.

Deolu Ogunbanjo, a telecom right activist, said Nigerian telecoms’ subscribers should sue the banks if they couldn’t use the USSD for their banking transactions by May ending, according to Daily Trust.

Ogunbanjo, who is the president of the National Association of Telecom Subscribers of Nigeria (NATCOMS), said the telcos wouldn’t be doing anything wrong if they eventually disconnect the banks.

Recall that in 2019, telcos sought to charge banks N4.50 for every 20 seconds of USSD usage, but banks opposed this, claiming it would drastically hike transaction costs.

In response to mounting pressures, the operators previously agreed to a new charge of N6.98 per transaction in 2021.

Despite this, the debt has escalated significantly, with Toriola urging the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) to mediate for a resolution.

He emphasized that if the situation remains unresolved, telcos may have no choice but to seek regulatory approval to cut off banks from USSD services entirely.

Toriola lamented that the telecom sector is in critical condition, likening it to being in the “intensive care unit.”

He warned of dire consequences if the government does not allow necessary tariff adjustments, stating, “If the tariff doesn’t go up, we’ll shut down.”

The House of Representatives on Tuesday urged the federal government to ensure timely registration and renewal of Nigeria’s orbital slots with a view to averting the loss of $400 million worth of investment in the industry.

The resolution was passed sequel to the adoption of a motion sponsored by Hon. Tolani Shagaya, who solicited for the intervention of the House.

In the bid to avert future occurrences, the lawmakers underscored the need for the present administration to establish an oversight mechanism to monitor progress regarding the utilisation of orbital slots and ensure compliance with the International Telecommunication Union (ITU) regulations.

In his lead debate, Hon. Shagaya observed that Nigeria has been granted three orbital slots by the International Telecommunication Union (ITU), essential for satellite placement in geostationary orbit.

“These slots are vital for telecommunication, broadcasting, weather monitoring, and national defence purposes.

“The House also notes that presently, just one of these slots is utilised through NigComSat-1, leaving the other two vulnerable to reassignment if left unused by the deadline of December 6, 2024.

“The House further notes that the expense of acquiring a new orbital slot is approximately $200 million USD, and the loss of these slots would not only result in a significant financial loss but also impede Nigeria’s technological progress and economic development.

“The House is aware that numerous factors contribute to the underutilisation of these slots, such as financial limitations, inadequate technical infrastructure, and delays in policy implementation.

“The House is also aware that the critical significance of these orbital slots goes beyond technological progress to include national security, disaster response, connectivity, and navigation capabilities.

“The House is concerned over Nigeria’s increasing competition with other countries for orbital slots, driven by the rising global demand for satellite services, which could lead to the permanent forfeiture of Nigeria’s assigned positions.

“The House acknowledges that it is imperative for Nigeria to expedite satellite development processes, secure necessary funding and explore partnerships with private companies and international space agencies to fully utilise these orbital slots.

“The House recognises that protecting Nigeria’s orbital slots goes beyond technical aspects; it is a critical element for national security, economic empowerment, and global standing. It is crucial to optimise the use of these slots to establish Nigeria as a significant player in the ever-changing space sector.”

The House further urged Nigeria Communications Satellite Limited (NigComSat) and the National Space Research and Development Agency (NASRDA) to intensify efforts in developing and launching satellites that will occupy our slots to prevent their forfeiture.

To this end, the House mandated the Committee on Digital and Communications Technology to conduct a comprehensive review of Nigeria’s current utilisation of its orbital slots and report within two weeks.

To advance Nigeria’s digital economy and support businesses facing economic headwinds, Google brought together top CEOs, government officials, and industry leaders at the 30th Nigerian Economic Summit (NES30).

The roundtable, themed “Leveraging Digital Solutions to Navigate Economic Volatility,” sparked dynamic discussions on how digital technology can empower businesses to not just survive but thrive amidst the nation’s economic challenges.

As Nigeria stands on the threshold of significant economic change, the country faces both complex challenges and vast potential. With a rapidly growing tech sector and a young, dynamic population, Nigeria is poised to become a leader in digital innovation across Africa. Digital transformation is essential for boosting economic growth, increasing productivity, and improving living standards. Research shows that for every $1 invested in digital technology, $8 is generated for the Nigerian economy—underscoring the immense value of embracing the digital shift.

Held on October 16, 2024, the roundtable featured influential figures such as Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, and Laoye Jaiyeola, Former CEO of the Nigerian Economic Summit Group. They highlighted the urgent need for collaboration across sectors to drive progress.

Opening with insights from a CEO survey conducted by Africa Practice, the discussions revealed that 46% of businesses reported revenue declines due to inflation and macroeconomic pressures. Yet, despite these hurdles, 70% of business leaders are actively looking to digital solutions to adapt, innovate, and fuel future growth. This widespread adoption of digital tools signals a strong readiness among Nigerian businesses to embrace technology as a transformative force.

Financial constraints, insufficient infrastructure, and limited access to foreign currency remain key barriers to adoption. However, leaders at the roundtable didn’t just outline the challenges—they committed to action.

Government representatives pledged to fast-track the digitization of public services, improve cross-agency collaboration, and address fiscal barriers to support digital transformation. Meanwhile, Google committed to exploring local payment solutions through partnerships, ensuring greater access to digital tools for businesses across Nigeria.

Industry leaders reinforced the private sector’s role in this transformation, emphasizing the importance of working closely with the government while investing in technology and digital skills development to bridge the talent gap.

Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, stated: “I’m excited about forums like this between Private and Public sector because of the opportunity to hear from one another and ideate. I’m a firm believer in working together, because the private sector cannot thrive without carrying along the public sector. Digital transformation should be mobilised within government as foundationary and by beginning this dialogue and continuing momentum, we can achieve a true shift in how Nigeria operates, with a digital first mindset.”

Laoye Jaiyeola, Former CEO of the Nigerian Economic Summit Group, highlighted: “Policy formation is only as effective as the effort behind it. Over the years, we’ve seen businesses engage briefly but move on if there’s no immediate solution. The NESG through its Digital Economy Policy Commission provides a platform for the private sector to make meaningful contributions in advancing digital solutions.”

Olumide Balogun, West Africa Director at Google, highlighted the power of collaboration, stating: “Technology holds the power to transform lives and economies. We believe that by working together—across government, business, and communities—we can unlock the immense potential that Nigeria’s digital economy holds for the future.”

The discussion also explored the potential of Artificial Intelligence (AI) as a key driver of economic growth. Google reiterated the importance of a responsible and ethical framework for AI adoption, ensuring that innovation is inclusive and beneficial to all Nigerians.

The roundtable concluded with a shared vision for Nigeria’s digital future. The session declaration, agreed upon by all participants, outlines a roadmap for the continued growth of the country’s digital economy, reflecting a strong commitment from both public and private sectors to turn challenges into opportunities.