The Nigerian Communications Commission (NCC) and telecommunications operators have ruled out any extension to the deadline for banks to settle outstanding Unstructured Supplementary Service Data (USSD) debts. This decision has left defaulting banks scrambling to meet the payment deadline by the close of business on Monday, January 27, 2025.
Initially, nine banks were in arrears, but as of Friday, the number had dropped to seven, with only two having made payments. According to industry sources, one more bank signaled its intention to pay by Monday, potentially reducing the number of defaulters to six.
This development follows a directive issued by the NCC on January 15, 2025, mandating the nine banks to settle their debts or face disconnection from USSD services. The USSD platform is a critical service that facilitates banking transactions for millions of Nigerians without internet access.
The Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), Gbenga Adebayo, confirmed that some progress had been made.
“As of Friday, only two banks had complied. One other bank has indicated they will settle today (Monday), leaving about five or six banks still outstanding,” Adebayo said.
The NCC and the Central Bank of Nigeria (CBN) had previously outlined a three-phase payment plan in a December 20, 2024 memo. This plan mandates banks to clear a total debt of N250 billion.
The first phase of the directive requires banks to settle 60% of all pre-API invoices by January 2, 2025. Non-compliance could result in the disconnection of USSD services, potentially disrupting financial transactions for millions of Nigerians.
Subsequent phases include full payment of all pre-API invoices by July 2, 2025, and settlement of 85% of post-API invoices by December 31, 2025.
“We hope that banks who have complied with this phase will continue to meet their obligations in the subsequent ones,” Adebayo stated.
When asked about the possibility of an extension, Adebayo was unequivocal.
“There will be no extension. Any decision to grant one would require joint approval from the NCC and CBN, but I doubt either regulator would act without consulting the other,” he explained.
The Director of Public Affairs at the NCC, Reuben Mouka, reiterated the deadline and the potential consequences of non-compliance.
“The directive is clear—disconnection will occur if banks fail to meet the payment deadline,” Mouka said. “The telecom operators will decide whether or not to disconnect services after today.”
Adebayo urged banks to comply promptly to avoid service disruptions that could impact millions of Nigerians who depend on mobile banking.
“It’s crucial for non-compliant banks to settle their debts to ensure we don’t disrupt the economy and the digital services subscribers depend on,” he said.
The NCC and telcos remain firm on enforcing the payment plan, emphasizing the importance of compliance to maintain the integrity of Nigeria’s digital financial ecosystem.
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