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 protracted ₦250 billion Unstructured Supplementary Service Data (USSD) debt impasse.
This directive, detailed in a joint circular dated December 20, 2024, was signed by Oladimeji Taiwo, Acting Director of Payments System Management at the CBN, and Chizua Whyte, Head of Legal and Regulatory Services at the NCC. The document, exclusively obtained by our correspondent, provides a structured framework for clearing the debt and introduces new operational guidelines for USSD services.
Under the terms of the directive, 60 percent of all debts incurred before February 2022, when Application Programming Interfaces (APIs) were implemented, must be paid as full and final settlement. Payment agreements must be finalized by January 2, 2025, with full settlement by July 2, 2025.
For debts incurred after February 2022, banks are mandated to pay 85 percent of all outstanding invoices by December 31, 2024, and ensure that 85 percent of future invoices are settled within one month of issuance.
The circular also directs both parties to discontinue all ongoing litigation related to the debt, warning that non-compliance will attract stiff sanctions. In addition, the transition to end-user billing for USSD services is allowed only for banks and telcos that meet the outlined payment obligations. Pending this transition, operators are required to implement a “10-seconds rule,” ensuring sessions shorter than 10 seconds are not billed. Banks using prepaid billing systems may migrate to end-user billing, subject to regulatory approval.
Telecom operators, under the Association of Licensed Telecom Operators of Nigeria (ALTON), have expressed frustration over the prolonged debt issue. Gbenga Adebayo, ALTON Chairman, revealed that while smaller banks have started repayments in installments, tier-one lenders—responsible for the bulk of the debt—are yet to make significant progress.
The ₦250 billion debt has strained the relationship between the banking and telecom sectors, with telecom operators previously threatening to suspend USSD services if payments were not made.
USSD services are critical in Nigeria, particularly for financial inclusion in rural areas where smartphone penetration and internet access are limited. Banks rely heavily on USSD for mobile banking, airtime top-ups, bill payments, and other telecom-related services.
The CBN and NCC emphasized that the directive aims to restore stability in the financial and telecom sectors while ensuring uninterrupted access to USSD services for Nigerians. As the January 2, 2025, agreement deadline approaches, stakeholders are under significant pressure to meet payment terms, with regulators standing firm on their commitment to enforcing compliance.
Comments