“Five Banks Settle USSD Debt as NCC’s Deadline Passes”
By Okafor Joseph Afam, January 28, 2025
At least five out of the nine commercial banks owing telecommunications companies a cumulative debt of N160 billion for Unstructured Supplementary Service Data (USSD) services have made partial or full payments following a disconnection ultimatum set by the Nigerian Communications Commission (NCC).
The NCC had, in a notice issued on January 15, warned that it would disconnect the USSD access of the affected banks if the debt was not settled by January 27, 2025. The banks listed in the notice were Fidelity Bank Plc (770), First City Monument Bank (329), Jaiz Bank Plc (773), Polaris Bank Limited (833), Sterling Bank Limited (822), United Bank for Africa Plc (919), Unity Bank Plc (7799), Wema Bank Plc (945), and Zenith Bank Plc (966).
A reliable source within the NCC revealed to BusinessDay on Monday that five of the banks had made payments. “Only four or fewer are yet to pay. They are responding. Banks have been responding since the advert came out,” the source said, without disclosing specific bank names. Another industry insider confirmed the development but added that the total debt owed to telecom operators remains significant.
The NCC had warned that failure to comply with its disconnection notice would result in affected banks losing USSD access, a critical platform for banking services used by millions of Nigerians. Reuben Muoka, the NCC’s Director of Public Affairs, stated that the commission would provide clarity on the matter after the deadline.
“In fulfillment of its consumer protection mandate, the Commission wishes to inform consumers that they may be unable to access the USSD platform of the affected financial institutions from January 27, 2025,” the NCC said in its earlier notice.
The dispute over USSD service charges between commercial banks and telecommunications companies has lingered since 2019, prompting intervention from both the NCC and the Central Bank of Nigeria (CBN). In a joint circular issued on December 20, 2024, the CBN and the NCC mandated banks to pay 85 percent of all outstanding USSD-related invoices by December 31, 2024. While nine out of 18 indebted banks reportedly complied by clearing over 90 percent of their debts, the remaining nine were issued the disconnection notice.
The NCC highlighted that the failure of banks to settle their USSD debts not only affects telecom operators but also disrupts their compliance with Good Standing requirements needed for the renewal of USSD codes.
USSD remains a vital payment channel in Nigeria, especially for unbanked and rural populations who rely on it for accessing essential banking services. A disconnection could leave millions unable to perform basic transactions, including funds transfers and balance inquiries.
As the situation unfolds, industry watchers anticipate that more banks will resolve their debts to avoid service disruptions, which could significantly affect customer satisfaction and financial inclusion in the country.
