MTN Nigeria has warned that it may suspend the Unstructured Supplementary Service Data (USSD) platform used for mobile banking operations if the government fails to resolve a growing debt of approximately N250 billion owed by banks.
This move could disrupt financial transactions such as cash transfers and balance inquiries, which millions of Nigerians rely on daily.
Speaking during a tour of MTN’s key facilities in Lagos, MTN Nigeria’s CEO, Karl Toriola, revealed that the debt, which has accumulated due to the use of the USSD system by banks, has become “unsustainable” for mobile network operators (MNOs).
“If the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) do not address this issue, we will be compelled to seek regulatory approval to suspend USSD services for banking transactions,” Toriola said.
Toriola expressed hope that the newly appointed CBN Governor, Yemi Cardoso, and the Executive Vice Chairman of the NCC, Dr. Aminu Maida, would step in to resolve the situation. However, he stressed that failure to do so would have serious consequences.
“The telecom sector is critically ill and lying in the intensive care unit (ICU). If the government does not apply the appropriate therapy, we may just lose the industry,” Toriola warned.
He further added that the telecom industry is facing unprecedented financial pressure due to rising inflation, naira devaluation, and the deregulation of the energy sector, which has caused fuel and electricity costs to soar.
“MTN is a loss-making company at the moment because of the naira devaluation. The fundamentals need to change, and tariffs must be adjusted to reflect the economic realities,” he said. “There should be no delusion—if the tariff doesn’t go up, we will shut down.”
Toriola also revealed that MTN, once one of Nigeria’s highest corporate taxpayers, has seen its tax contributions drop to zero due to a lack of profitability. He emphasized that while the telecom industry has been a transformative enabler for other sectors, its survival is now in jeopardy.
“We must return the industry to profitability. Otherwise, it could go the way of NITEL,” he cautioned, referring to the defunct Nigerian Telecommunications Limited.
