CBN, NCC give banks, telcos six-month ultimatum on N250bn USSD debt
The Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) have issued a final directive to Deposit Money Banks (DMBs) and Mobile Network Operators (MNOs) to resolve the long-standing N250 billion Unstructured Supplementary Service Data (USSD) debt dispute.
The directive, released in a joint circular dated 20 December 2024, was signed by the acting Director of Payments System Management at the CBN, Oladimeji Taiwo, and the Head of Legal and Regulatory Services at the NCC, Chizua Whyte.
The circular, which was exclusively obtained by our correspondent, outlines a structured payment plan for clearing the debt and introduces new operational guidelines for USSD services. It also directs both parties to discontinue all ongoing litigation related to the debt issue, with a warning that non-compliance would result in severe sanctions.
“In view of the foregoing, the CBN and NCC hereby direct that all DMBs and MNOs adhere strictly to the outlined payment terms to ensure final resolution of this matter. Failure to comply will result in sanctions,” the circular stated.
This development follows increasing pressure from telecom operators, who had previously called for a clear payment framework to address the debt, which has strained relations between the banking and telecom sectors.
The regulators also highlighted the transition to end-user billing (EUB) for USSD services, specifying that it will only apply to banks and telecom companies that meet the outlined payment obligations. In the interim, operators are required to implement a “10-seconds rule,” ensuring that sessions shorter than 10 seconds are not billed.
The circular also noted that banks currently using prepaid billing systems would have the opportunity to migrate to EUB, subject to regulatory approval.
The CBN and NCC reiterated their commitment to resolving the debt crisis, emphasising that the measures aim to promote stability in both the financial and telecommunications sectors while ensuring the continued availability of USSD services for Nigerians.
USSD services are crucial for financial inclusion in Nigeria, particularly in rural areas where smartphone penetration and internet access are limited. Banks rely heavily on USSD for mobile banking, and the service is also used for activities such as airtime top-ups, bill payments, and other telecom services.
The debt dispute has lingered for years, with telecom operators threatening to suspend USSD services unless payments are made. While smaller banks have reportedly started repaying their obligations in instalments, tier-one banks, which account for the bulk of the debt, have yet to make significant payments, according to Gbenga Adebayo, Chairman of the Association of Licensed Telecom Operators of Nigeria.
