Banks Settle Major USSD Debt to Prevent Service Disconnection

Nigeria’s telecom operators have maintained Unstructured Supplementary Service Data (USSD) services active after banks made significant progress in settling their outstanding debts.

The banks, which were at risk of being disconnected due to a N160bn debt, have cleared much of their liabilities, thus ensuring continued access to the USSD platform, which is essential for users without internet access.

The Nigerian Communications Commission (NCC) had previously warned that nine banks would be cut off from USSD services by January 27, 2024, if they did not settle their debts. However, the banks swiftly addressed the issue, preventing any service disruptions.

Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria, confirmed that the situation had been resolved at a CEO forum in Lagos.

“The matter has been de-escalated. Money has been paid, and we are making progress thanks to the regulators,” he said.

The nine banks that were at risk of disconnection from USSD services by the Nigerian Communications Commission (NCC) included Fidelity Bank Plc, First City Monument Bank, Jaiz Bank Plc, Polaris Bank Limited, Sterling Bank Limited, United Bank for Africa Plc, Unity Bank Plc, Wema Bank Plc, and Zenith Bank Plc.

The dispute began in 2019 when banks started incurring charges for using USSD services provided by telecom companies. Many banks struggled to settle these charges, leading to the accumulation of a significant debt.

This enforcement is part of the first phase of a structured payment plan outlined in a memo issued on December 20, 2024, by the Nigerian Communications Commission (NCC) and the Central Bank of Nigeria (CBN). The memo specifies a three-phase payment obligation for banks to settle the N250 billion debt, with deadlines for each phase.

The first phase of the payment plan requires banks to settle 60% of all outstanding pre-API invoices by January 2, 2025. The second phase mandates the full payment of all pre-API invoices by July 2, 2025. The third phase requires banks to settle 85% of post-API invoices by December 31, 2025.