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Nine Nigerian banks have taken significant steps toward settling their outstanding debts to telecommunication operators for Unstructured Supplementary Service Data (USSD) services, thereby averting a looming disconnection.
The Nigerian Communications Commission (NCC) had previously approved the disconnection of USSD codes assigned to these financial institutions due to an accumulated debt exceeding N160 billion. A public notice issued by the NCC, signed by its Director of Public Affairs, Reuben Muoka, had set a strict deadline of January 27, 2025, for the banks to clear their obligations or risk losing access to USSD services.
USSD codes are essential for mobile banking, particularly for customers without internet access, making them a vital component of Nigeria’s digital financial ecosystem. If the debts remained unsettled, the affected codes could have been reassigned, potentially disrupting millions of banking transactions nationwide.
However, Engineer Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria, provided an update during the Telecoms CEO Forum in Lagos, confirming progress on the matter. “The situation has been de-escalated. Payments have been made, and we are making steady progress thanks to regulatory interventions,” he stated.
The banks initially at risk of disconnection included Fidelity Bank Plc, First City Monument Bank, Jaiz Bank Plc, Polaris Bank Limited, Sterling Bank Limited, United Bank for Africa Plc, Unity Bank Plc, Wema Bank Plc, and Zenith Bank Plc.
The dispute dates back to 2019 when banks began accumulating charges for utilizing USSD services provided by telecom operators. Many financial institutions encountered challenges in clearing these fees, leading to the significant debt buildup.
With ongoing regulatory oversight and active engagement between banks and telecom operators, efforts to resolve the debt issue continue, ensuring uninterrupted mobile banking services for millions of Nigerians.
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