Nigeria’s CBN and NCC Mandate ₦250 Billion USSD Debt Settlement Between Banks and Telecom Operators

The Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) have jointly directed Deposit Money Banks (DMBs) to resolve the long-standing ₦250 billion USSD debt owed to Mobile Network Operators (MNOs).

In a circular dated December 20, 2024, the regulators highlighted ongoing issues arising from unpaid USSD platform charges by banks, which have persisted despite earlier attempts at resolution. This unresolved debt has significantly strained the relationship between the financial and telecommunications sectors.

Jointly 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 circular underscores the urgency of resolving the matter. The directive, obtained earlier this week, outlines a structured approach to settling both pre- and post-API debts.

Settlement Terms

Pre-API Debts:

• Banks are required to pay 60% of all outstanding invoices issued before the implementation of Application Programming Interfaces (APIs) in February 2022.
• This payment will be considered a full and final settlement for these older debts.
• Agreements must be concluded by January 2, 2025, with payments fully made by July 2, 2025.

Post-API Debts:

• Banks must settle 85% of invoices issued after the API rollout by December 31, 2024.
• Additionally, 85% of any future invoices must be cleared within one month of issuance.

Transition to End-User Billing (EUB)

To encourage compliance, the regulators proposed adopting an End-User Billing (EUB) model. Under this model, customers will bear the cost of USSD services directly, removing banks from the billing process. However, eligibility for the EUB model will be limited to banks and telecom operators that meet their payment obligations.

The regulators have also ordered an immediate halt to all legal actions related to the USSD debt to foster cooperation. A nationwide public awareness campaign will be launched to educate Nigerians on the transition to the EUB model when implemented.

Enforcement Measures

The circular warns of severe consequences for non-compliance, including fines and operational restrictions. These measures underline the regulators’ commitment to stabilizing the sectors and ensuring uninterrupted USSD financial services.

Resolving the debt dispute is expected to strengthen collaboration between Nigeria’s financial and telecommunications sectors, restore confidence, and prevent disruptions to USSD services relied upon by millions of Nigerians daily.