Federal Government to Sanction 18 Banks Over ₦200 Billion USSD Debt
The Federal Government is expected to release the names of 18 banks owing nearly ₦200 billion to Nigerian telecom operators for Unstructured Supplementary Service Data (USSD) services. These debts have remained unpaid for several years, with the banks showing little willingness to resolve the issue.
The move appears aimed at encouraging telecom operators to halt services that enable convenient online banking for these banks’ customers. In December 2024, the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) issued a final directive to resolve the long-standing ₦250 billion USSD debt dispute.
A joint circular, dated December 20, 2024, and signed by the acting Director of Payments System Management at the CBN, Oladimeji Taiwo, and the Head of Legal and Regulatory Services at the NCC, Chizua Whyte, outlined a structured payment plan and introduced new operational guidelines for USSD services.
Key Points of the Directive:
- Debt Settlement:
- 60% of debts incurred before February 2022 must be paid as full and final settlement.
- Agreements for payment (lump sum or installments) must be finalized by January 2, 2025, with full settlement by July 2, 2025.
- Post-2022 Debt:
- Banks are required to pay 85% of all outstanding invoices issued after February 2022 by December 31, 2024.
- Future invoices must have 85% settled within one month of issuance.
- Litigation:
- Ongoing legal disputes related to the USSD debt must be discontinued. Non-compliance will result in strict sanctions.
- Billing Transition:
- The transition to end-user billing (EUB) for USSD services will apply only to banks and telecom operators that meet the outlined payment obligations.
- Pending this transition, operators must implement a “10-seconds rule,” ensuring sessions under 10 seconds are not billed.
- Prepaid Billing Migration:
- Banks using prepaid systems can migrate to EUB with regulatory approval.
The directive aims to ease tensions between the banking and telecom sectors, ensuring continued access to USSD services critical for financial inclusion, especially in rural areas with limited smartphone penetration and internet access.
Despite smaller banks making installment payments, tier-one banks—accounting for most of the debt—have been slow to comply, according to Gbenga Adebayo, Chairman of the Association of Licensed Telecom Operators of Nigeria.
The CBN and NCC remain committed to resolving the debt crisis, fostering stability in both sectors, and ensuring Nigerians continue to benefit from USSD services.