Telecommunications companies in Nigeria, under the directive of the Nigerian Communications Commission (NCC), are set to suspend Unstructured Supplementary Service Data (USSD) services for 18 banks due to unpaid debts amounting to ₦200 billion. The debts have been accumulating since 2019 and have become a clash between telecom operators and the financial sector.
The Central Bank of Nigeria (CBN) and the NCC had earlier mandated banks to clear a significant portion of the debt. Despite this directive, only four banks have complied, leaving 18 others in violation of the order. As a result, the NCC is preparing to issue a public notice, naming the defaulting banks and informing customers about the upcoming suspension of USSD services.
USSD, a vital payment gateway for many Nigerians, facilitates transactions for individuals who may not have access to internet banking. This impending suspension could disrupt financial operations for many customers reliant on the service.
According to sources within the NCC, the suspension will not be immediate. A two-week notice will be provided to allow the public to make alternative arrangements. This measure emphasizes the significant impact the suspension could have, as USSD services are deeply integrated into daily financial transactions.
During the telecom sector’s 20th-anniversary celebration in 2021, Ebenezer Onyeagwu, then Group Managing Director of Zenith Bank Plc, highlighted the transformative role of USSD services, stating, “The introduction of USSD changed everything. Without telecoms infrastructure, there is no USSD code.”
The value of USSD transactions has seen a sharp decline. Between January and June 2024, USSD transactions totaled ₦2.19 trillion—a 54.75% drop compared to ₦4.84 trillion during the same period in 2023. This decline is attributed to the growing preference for internet-based transactions among Nigerians.
In a memo dated December 20, 2024, the CBN and NCC set a deadline for banks to settle 85% of all outstanding invoices from February 2022 by December 31, 2024. Despite this mandate, most banks have failed to comply, leading to the current standoff.
