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Nigeria: NCC, Telcos Hold Firm on USSD Debt Deadline for Banks

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NCC, Telcos Hold Firm on USSD Debt Deadline for Banks
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The Nigerian Communications Commission (NCC) and telecommunications companies have reiterated that there will be no extension to the deadline for banks to settle their outstanding Unstructured Supplementary Service Data (USSD) debts.

This firm stance has left defaulting banks under pressure to meet the payment deadline by close of business on Monday.

As of Friday, seven banks remained in arrears, down from the initial nine identified by the telecom operators. Among these, only two banks had made payments, while one more indicated readiness to comply by Monday. This leaves six banks still owing as the deadline looms.

The directive, issued by the NCC on January 15, 2025, mandated the affected banks to clear their debts by January 27, 2025, or risk disconnection of their USSD codes—a critical service enabling millions of Nigerians to perform banking transactions without internet access.

Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), confirmed the reduced number of defaulting banks but stressed the urgency of compliance.

“One of these seven banks has committed to settling their debt today (Monday), leaving about five or six banks still outstanding,” Adebayo stated.

This enforcement marks the first phase of a structured payment plan detailed in a joint memo from the NCC and the Central Bank of Nigeria (CBN) issued on December 20, 2024. The plan outlines a three-phase settlement process for the N250 billion USSD debt.

In the first phase, banks were required to pay 60 percent of all outstanding pre-API invoices by January 2, 2025. Adebayo underscored the importance of this initial phase, warning that non-compliance could result in the disconnection of USSD services—a lifeline for many Nigerians who depend on mobile banking for daily transactions.

“This is only the beginning. Banks that comply with this phase must continue to meet their obligations in subsequent phases,” Adebayo said.

The second phase mandates the full payment of pre-API invoices by July 2, 2025, while the third phase requires 85 percent settlement of post-API invoices by December 31, 2025.

Adebayo expressed optimism that banks would adhere to the outlined timeline, emphasizing the potential consequences of non-compliance. “Each phase must be met fully to avoid service disruptions,” he added.

When asked about the possibility of extending the deadline, Adebayo dismissed the idea, clarifying that such a decision would require joint approval from both the NCC and the CBN—a scenario he described as unlikely.

“No extensions will be granted. Any decision to adjust the timeline would require consultation and joint approval, but this is not expected,” he noted.

The ATCON chairman urged non-compliant banks to settle their debts promptly, highlighting the economic and operational risks of USSD service disruptions.

“It’s imperative for banks to fulfill their obligations to prevent disruptions to mobile banking services that millions of Nigerians depend on daily,” Adebayo stressed.

Reuben Mouka, NCC’s Director of Public Affairs, reaffirmed the deadline, warning that banks failing to comply risk disconnection.

“We’ve communicated clearly that disconnection will follow non-payment. The decision now lies with the telecom operators,” Mouka stated.

As the deadline draws to a close, the telecom regulator and operators remain steadfast in their commitment to enforcing compliance to safeguard the integrity of mobile banking services across the country.

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