The Nigerian Communications Commission (NCC) has instructed telecom operators to disconnect the Unstructured Supplementary Service Data (USSD) codes of nine banks that have failed to settle their debts. This decision comes as part of an ongoing dispute over a staggering N250 billion owed by various financial institutions for USSD services.
The banks facing disconnection include some well-known names: Fidelity Bank, First City Monument Bank, Jaiz Bank, Polaris Bank, Sterling Bank, United Bank for Africa (UBA), Unity Bank, Wema Bank, and Zenith Bank. Each of these institutions has been given until January 27, 2025, to clear their outstanding debts or risk losing access to their USSD codes.
In a public notice issued by Reuben Muoka, the Director of Public Affairs at the NCC, it was highlighted that as of January 14, 2025, nine out of 18 banks had not complied with the regulatory directives aimed at settling their debts. This situation has escalated tensions between telecom operators and banks, which have been at odds over these unpaid service charges for years
USSD codes have become an essential tool for financial transactions in Nigeria, particularly because they allow users to access banking services without needing an internet connection. This is especially crucial in a country where internet access is still limited for many.
The NCC’s warning follows months of pressure from mobile operators who have expressed frustration over the unpaid debts, claiming it has adversely affected their businesses. While some smaller banks have begun making payments, larger institutions have been slower to respond.
In November 2024, the Association of Licensed Telecom Operators of Nigeria (ALTON) reported that while some progress had been made in debt repayments, major banks still owed significant amounts. The NCC and the Central Bank of Nigeria (CBN) previously issued a joint circular in December outlining a new payment procedure that requires banks to settle 60% of pre-2022 debts by early January 2025 and 85% of USSD debts incurred after February 2022 by the end of December 2024.
With the deadline looming, the NCC has made it clear that failure to comply will result in service disruptions for customers. Consumers may be unable to access the USSD platform of the affected financial institutions from January 27.
