The Nigerian Communications Commission (NCC) has directed telecom operators, including MTN, Airtel, and Glo, to suspend the Unstructured Supplementary Service Data (USSD) codes of nine banks by January 27, 2025, unless they settle outstanding debts. This announcement, made public through a notice signed by Reuben Muoka, NCC’s Director of Public Affairs, highlights a long-standing financial dispute between the banking and telecommunications sectors.
The nine defaulting banks include major players such as Fidelity Bank (770), First City Monument Bank (329), Jaiz Bank (773), Polaris Bank (833), Sterling Bank (822), United Bank for Africa (919), Unity Bank (7799), Wema Bank (945), and Zenith Bank (966). According to the NCC, these institutions have failed to comply with payment directives outlined in a joint circular issued by the NCC and the Central Bank of Nigeria (CBN) on December 20, 2024.
A Standoff Rooted in Unpaid USSD Fees
The N250 billion debt stems from unpaid charges for USSD services, which were initially developed by telecom operators for airtime purchases but have since become essential for banking transactions. These codes provide financial services to users without requiring an internet connection, a vital feature in Nigeria, where internet and smartphone penetration remain relatively low.
Over time, telecom operators have repeatedly raised concerns over the unpaid debts, emphasizing the financial strain it has placed on their operations. In November, some progress was noted as smaller financial institutions began clearing their debts. However, according to Gbenga Adebayo, Chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON), larger banks that owe the bulk of the debt have yet to make significant payments.
Final Warning Issued by Regulators
To address the impasse, the NCC and CBN issued a joint directive in December 2024, mandating that 60% of pre-2022 debts be settled by January 2, 2025, as part of a phased payment structure. All debts accrued after February 2022 must meet an 85% repayment target by December 31, 2024, with future invoices to be cleared within one month of issuance.
Despite these guidelines, many tier-one banks remain noncompliant. The NCC warned that failure to meet these obligations could result in the suspension of their USSD codes, which would disrupt services for millions of customers.
Prolonged Disputes and Potential Impacts
The debt dispute dates back to 2020, with several invoices still unpaid, indicating a persistent financial disagreement between telecom operators and banks. The NCC has emphasized that unresolved issues could lead to service interruptions for consumers starting January 27, 2025.
“In line with its consumer protection mandate, the commission informs the public that access to the USSD platforms of affected banks may be disrupted if compliance is not achieved,” the NCC stated.
The commission also noted that failure to clear debts may impact the renewal of USSD code licenses, further complicating the banks’ operational capabilities.
A Call for Resolution
The impending disconnection serves as a stark reminder of the need for collaboration between financial institutions and telecom operators to resolve this long-standing issue. The NCC and CBN have urged the affected banks to prioritize compliance, warning of the potential consequences for consumers and the broader financial ecosystem if the matter remains unresolved.
