By Ebestnations
The Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) have issued a conclusive directive to Deposit Money Banks and Mobile Network Operators aimed at resolving the longstanding N250 billion Unstructured Supplementary Service Data (USSD) debt dispute.
Both CBN and NCC serve as regulatory bodies under the Federal Government.
This directive, detailed in a joint circular dated December 20, 2024, was signed by Oladimeji Taiwo, the acting Director of Payments System Management at the CBN, and Chizua Whyte, the Head of Legal and Regulatory Services at the NCC.
The document, which was exclusively obtained by our correspondent, presents a structured payment plan for settling the debt and introduces new operational guidelines for USSD services.
According to the directive, 60 percent of all debts incurred prior to the implementation of Application Programming Interfaces in February 2022 must be paid as a complete and final settlement.
Payment arrangements—whether in lump sums or installments—must be finalized by January 2, 2025, with full payment required by July 2, 2025.
For debts incurred after February 2022, the CBN and NCC have mandated that banks settle 85 percent of all outstanding invoices by December 31, 2024, and ensure that 85 percent of future invoices are paid within one month of issuance.
The regulators have also instructed both parties to cease all ongoing litigation related to the USSD debt issue, warning that failure to comply will result in severe penalties.
“In light of the above, the CBN and NCC direct all Deposit Money Banks and Mobile Network Operators to strictly adhere to the specified payment terms to ensure a final resolution of this matter. Non-compliance will lead to sanctions,” the circular emphasized.
This action follows increasing pressure from telecom operators, who previously requested a clear payment framework to address the debt, which has created tension between the banking and telecom sectors.
Regulators have underscored the shift to end-user billing (EUB) for USSD services, clarifying that this will only affect banks and telecommunications companies that fulfill the specified payment requirements.
In the interim, operators must adhere to a “10-seconds rule,” which stipulates that sessions lasting less than 10 seconds will not incur charges.
The circular also pointed out that banks utilizing prepaid billing systems have the option to transition to EUB, contingent upon receiving regulatory approval.
The Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) reaffirmed their dedication to addressing the ongoing debt situation, emphasizing that these initiatives are designed to promote stability in both the financial and telecommunications industries while ensuring that USSD services remain accessible to Nigerians.
In Nigeria, USSD plays a crucial role in enhancing financial inclusion, especially in rural regions where access to smartphones and the internet is limited.
Banks depend significantly on USSD for mobile banking, as well as for functions such as airtime purchases, bill payments, and various telecom services.
The debt crisis has been ongoing for several years, with telecom operators warning of potential USSD service suspensions if payments are not made.
While smaller banks have reportedly started to repay their debts in installments, major tier-one banks, which account for the majority of the debt, have yet to make substantial payments, as noted by Gbenga Adebayo, Chairman of the Association of Licensed Telecom Operators of Nigeria.
“Some repayments have been made, but they do not meet our expectations,” Adebayo stated in an interview with The PUNCH in November.
eonojakaromah