Banking
N42bn Debt: Anxiety Over Planned Disruption of Banks’ USSD Codes
By Adedapo Adesanya
Customers of financial institutions operating in the country are confused and do not know what will happen from Monday, March 15, 2021, when they might not be able to use Unstructured Supplementary Service Data (USSD) codes to carry out a transaction.
This is because the Association of Licensed Telecommunications Operators of Nigeria (ALTON), the umbrella body of licensed telecommunications service providers (network operators, infrastructure companies and value-added services providers) has concluded plans to commence a phased withdrawal of USSD services to Financial Service Providers (FSPs) over N42 billion debt.
A statement signed by Mr Gbenga Adebayo, Chairman, ALTON and Gbolahan Awonuga, Head of Operations, the withdrawal of the services is billed to start with the most significant debtors within the FSPs.
ALTON disclosed that the withdrawal of USSD services to financial service providers was mainly due to huge indebtedness to telecom network operators.
Giving the background to the problem, ALTON said, “In order to accelerate the adoption of financial services on USSD, the Financial Service Providers (FSPs) partnered our members to zero-rate the USSD access to end-users, while they bore the cost for the provision of service.
“Based on this arrangement, the banks took on the responsibility of billing customers and paid our members for use of the USSD infrastructure from the service fees deducted from the customer’s bank account.
“Following the issuance of the USSD Pricing determination by the Nigerian Communications Commission (NCC) which resulted in a price review of USSD service by our members, the banks decided that they would no longer pay for USSD service delivered to their customers and requested our members to charge customers directly for use of the USSD channel.
“This billing methodology where the Financial Service Providers (FSPs) customer is directly charged USSD access fees by our members irrespective of the service charges that the bank may subsequently apply to the customers’ bank account is called End-User Billing which the banks specifically demanded that all our members implement.
“The banks, however, provided no assurances to our members that such service fees charged to customers’ bank accounts for access to bank services through the USSD channel would be discontinued post implementation of end-user billing by our members.
“The removal of these service fees by the Financial Service Providers (FSPs) would have meant that if bank customers were charged only the USSD costs communicated by our members per USSD session, bank customers will be paying far less than what they are currently being charged by the Financial Service Providers (FSPs) which in some instances are as high as N50.
“Additionally, the banks and telcos will be applauded for collaborating towards the financial inclusion objectives of the federal government.”
The further said it has been more than eight months since the NCC issued an updated pricing methodology for USSD services for financial transactions in Nigeria, a methodology which explicitly restricted Mobile Network Operators (MNO’s) from charging the end user for the services and mandated the banking sector to enter into negotiations to settle outstanding obligations and agree with individual pricing mechanisms to be applied going forward.
“During this time, Mobile Network Operators (MNO’s) have continued to provide access to USSD infrastructure and our members have continued to pay all Bank charges and fees to access the Banking industries assets and customers, despite the fact that obligations due from banks to telecoms companies for USSD services has reached over N42 billion.
“ALTON members have continued to provide these services because our primary concern is that the millions of Nigerian customers who access financial services through our USSD infrastructure every day should be able to continue conducting their transactions. This was given greater importance when customers’ became further reliant on these services due to COVID movement restrictions.
“Unfortunately, as it has been impossible to agree on a structure for these payments with the banks that do not involve the end-user being asked to pay, the government has been forced to intervene to ensure that a sustainable cost-sharing solution is agreed, that does not disadvantage the consumer in the long-term.”
The group disclosed that withdrawal of services to FSPs has become unavoidable saying, “We deeply regret that we have reached a point where the withdrawal of these services has become unavoidable, however, we remain committed to working closely with the relevant Ministries and regulators to resolve this issue as quickly as possible.
“To minimise the disruption to customers, and with the concurrence of the Honourable Minster of Communications and Digital Economy and the Nigerian Communications Commission, on the huge debt to the Network operators; Mobile Network Operators will disconnect debtorFinancial Service Providers (FSPs) from USSD services, until the huge debt is paid.
“Therefore, our members are initiating a phased process of withdrawal of USSD services, starting with the most significant debtors within the Financial Service Providers (FSPs) effective Monday March 15, 2021.”
By Dipo Olowookere
Shareholders of Wema Bank Plc will receive a dividend of N1.25 for the 2025 financial year if approved at the next Annual General Meeting (AGM).
The board proposed the cash reward to investors after achieving record-breaking growth and unparalleled performance across several key metrics in the year under review.
Details of the FY 2025 audited financial results of the lender showed that pre-tax profit went up by 116.4 per cent to N221.9 billion from N102.5 billion, while net profit soared by 125.4 per cent to N194.5 billion from N86.2 billion in 2024.
Last year, the financial institution grew its gross earnings by 52.8 per cent to N660.6 billion from N432.3 billion in the preceding year, driven largely by a 62.7 per cent growth in interest income, reflecting improved yields on earning assets and growth in the loan book.
As for its balance sheet, it was observed that total assets chalked up 41.5 per cent to N5.07 trillion from N3.59 trillion, and customer deposits grew by 30.3 per cent to N3.29 trillion from N2.52 trillion, demonstrating sustained customer confidence.
This growth in deposits provided stable funding for asset growth while supporting liquidity and balance sheet resilience. Net interest income more than doubled, rising by 103.9 per cent to N361.0 billion, supported by improved asset pricing and balance sheet expansion. Non-interest income also grew modestly by 8.3 per cent to N85.3 billion. Net loans and advances increased by 44.7 per cent to N1.74 trillion, up from N1.20 trillion in FY 2024, thus reflecting Wema Bank’s continued support for key sectors of the economy while maintaining a disciplined risk management approach.
“Wema Bank has delivered one of the strongest growth trajectories in its history. From a PBT of N14.75 billion three years ago, we grew to N43.59 billion in 2023 and reached N102 billion in 2024. In 2025, we have taken an even bolder step forward, recording a PBT of N221 billion,” the chief executive of Wema Bank, Mr Moruf Oseni, commented.
“As of September 2025, Wema Bank successfully surpassed the N200 billion recapitalisation minimum threshold for commercial banks with national authorisation.
“Our FY2025 Financial Results only corroborate what has become abundantly clear—Wema Bank is here not just to stay, but to lead the future of banking in Africa,” he added.
By Adedapo Adesanya
The Central Bank of Nigeria (CBN) is considering the recapitalisation and restructuring of Development Finance Institutions (DFIs) to address the significant financing gap facing micro, small, and medium-sized enterprises (MSMEs).
The Deputy Governor of the apex bank in charge of Economic Policy, Mr Muhammad Abdullahi, disclosed this during a panel session at the launch of the Nigeria Development Update by the World Bank in Abuja on Tuesday.
He explained that a recent review by the apex bank found that existing DFIs were too small to meet the credit needs of businesses.
DFIs are specialised, government-backed financial entities designed to promote economic growth by funding critical sectors like agriculture, infrastructure, and SMEs. Key institutions include the Bank of Industry (BOI), Development Bank of Nigeria (DBN), Nigeria Export Import Bank (NEXIM Bank), Bank of Agriculture (BOA), National Credit Guarantee Company Limited, and Nigerian Consumer Credit Corporation, among others.
“We conducted a review last year of the development finance space. Across all the DFIs in Nigeria, the total asset base is slightly above N8 trillion, whereas what is required in development finance for MSMEs is over N130 trillion,” he said.
He said that simply injecting capital would not solve the problem.
“The only way to address this is not only through public sector capital injections into these institutions, but also by making them bankable and investable,” he said.
Abdullahi said the CBN and the Ministry of Finance are reviewing DFI structures to improve their efficiency and risk appetite.
“We are reviewing the entire sector to ensure that we can correct the incentives, improve risk appetite, and also strengthen capital levels,” the deputy governor added.
He also said the reforms aim to introduce stronger market-based principles.
“We are looking at the structure to see how more market fundamentals can be incorporated, because the way it has been done in the past has not delivered the desired results,” Mr Abdullahi said.
On the persistent financing challenge for MSMEs, he said lending to the real sector has always been one of the structural challenges “Nigeria’s economy faces in terms of ensuring that credit reaches businesses that require it”.
Business Post reports that the CBN recently concluded the recapitalisation of the Nigerian banking sector, while the insurance sector is ongoing.
By Modupe Gbadeyanka
The women-focused initiative by Sterling Bank, OneWoman, is already yielding positive results, especially in promoting financial inclusion and empowering female-led enterprises in Nigeria.
Business Post reports that the programme was created to support women through three key pillars of capital, capacity, and community.
In 2025, according to the Head of the OneWoman Initiative, Ms Ezinne Nwokafor, the initiative gave out N43.9 billion loans to 2,450 female entrepreneurs, trained 6,000 of them, served about 380,000 women across three sectors of career women, women in business and freshers, and their vision 2030 is to give out N500 billion loans to one million women across their three sectors.
She noted that a significant majority of Nigerian women remain excluded from formal credit, with only a small percentage able to access structured financing. Despite improvements in financial inclusion, women continue to face systemic barriers that limit their ability to secure funding.
Ms Nwokafor pointed out that women account for a substantial share of micro, small, and medium enterprises and contribute meaningfully to the economy, yet face a financing gap estimated at $42 billion annually, according to the International Finance Corporation.
She also referenced data showing that more than half of women-led businesses identify access to finance as a major constraint, while rejection rates for loan applications remain significantly higher for women than for men.
According to her, these challenges are often linked to structural issues such as gaps in asset ownership, social norms, and limited access to financial data and visibility.
“Sterling’s OneWoman initiative is positioned to bridge this gap by combining financial solutions, mentorship, capacity building, and community support for women across different stages of their journey,” she said at the Funding Her Future Breakfast Dialogue in Lagos.
The session brought together voices from across sectors for a focused and necessary conversation on how to unlock more inclusive and effective financing pathways for women-led businesses in Nigeria.
On his part, the chief executive of Sterling Bank, Mr Abubakar Suleiman, said, “Women-led businesses need the right support systems, the right networks, and the right ecosystem to grow with confidence and scale with resilience.”
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