Nine Nigerian banks that faced potential disconnection from Unstructured Supplementary Service Data (USSD) services due to a ₦160 billion debt have made significant progress in their repayment, ensuring uninterrupted access to mobile banking services for their customers.
USSD remains a critical payment channel for millions of Nigerians, particularly those without access to smartphones or internet banking. A disruption would have severely impacted access to essential financial transactions, making the resolution of the debt dispute a top priority.
On January 15, 2024, the Nigerian Communications Commission (NCC) issued a notice stating that it would suspend USSD services for nine banks over their failure to settle accumulated debts dating back to 2019. The deadline for repayment was set for January 27, 2024.
However, in a swift response, the affected banks took urgent steps to de-escalate the situation. By January 28, five of them had already made partial payments ahead of the deadline, ensuring that their customers would retain access to USSD banking services.
Gbenga Adebayo, chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), confirmed on Saturday that progress had been made. He stated, “The matter has been de-escalated. Payments have been made, and we are moving forward with the support of regulators.” Similarly, Karl Toriola, CEO of MTN Nigeria, emphasized that telecom operators and banks had resolved their differences, crediting the Central Bank of Nigeria (CBN) and the NCC for facilitating the resolution.
The nine banks initially marked for USSD service disconnection included;
- Fidelity Bank Plc (770)
- First City Monument Bank (FCMB) (329)
- Jaiz Bank Plc (773)
- Polaris Bank Limited (833)
- Sterling Bank Limited (822)
- United Bank for Africa (UBA) Plc (919)
- Unity Bank Plc (7799)
- Wema Bank Plc (945)
- Zenith Bank Plc (966)
These financial institutions had been caught in a longstanding dispute with telecom operators over unpaid USSD infrastructure fees—a conflict that had persisted since 2019. The CBN and NCC took decisive action in December 2023, issuing a directive that required banks to pay 85% of their outstanding USSD debts by December 31, 2024. This mandate covered unpaid invoices dating back to February 2022.
By the deadline, nine out of the 18 indebted banks had cleared over 90% of their outstanding payments, significantly reducing the risk of service disruption. The resolution of this dispute underscores the crucial role of regulatory bodies in maintaining stability between Nigeria’s banking and telecommunications sectors, ensuring that customers continue to enjoy seamless digital banking services.
