CBN and NCC Set 6-Month Deadline for Banks and Telcos to Resolve ₦250bn USSD Debt
The Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) have issued a final directive to Deposit Money Banks (DMBs) and Mobile Network Operators (MNOs) to settle the long-running ₦250 billion Unstructured Supplementary Service Data (USSD) debt dispute.
In a joint circular dated December 20, 2024, the two regulatory bodies set a six-month deadline for the resolution of the issue, signaling the Federal Government’s commitment to addressing the matter once and for all.
CBN and NCC Officials Sign Circular Mandating Resolution of ₦250bn USSD Debt
The joint circular, issued by the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC), was 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. This directive outlines a six-month deadline for resolving the long-standing ₦250 billion Unstructured Supplementary Service Data (USSD) debt dispute.
CBN and NCC Unveil Structured Plan to Resolve ₦250bn USSD Debt
In an exclusive document obtained by Punch Online, the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) have outlined a structured repayment plan for the ₦250 billion Unstructured Supplementary Service Data (USSD) debt and set new operational guidelines for USSD services.
Key Provisions of the Directive:
Pre-February 2022 Debts
Deposit Money Banks (DMBs) are required to pay 60% of all debts accrued before the introduction of Application Programming Interfaces (APIs) in February 2022. This payment will serve as the full and final settlement. Banks must finalize payment agreements, either as a lump sum or in installments, by January 2, 2025, with full payment due by July 2, 2025.
Post-February 2022 Debts
Banks are required to settle 85% of all outstanding invoices by December 31, 2024. For future invoices, 85% must be paid within one month of issuance.
Litigation and Compliance
Ongoing legal disputes related to USSD debt must be discontinued. The circular also stresses that non-compliance with these payment terms will lead to severe sanctions from the regulators. “In light of the above, the CBN and NCC direct all DMBs and MNOs to comply strictly with the payment terms to achieve a final resolution of this matter. Failure to comply will result in sanctions,” the circular stated.
Shift to End-User Billing (EUB)
The directive mandates a transition to end-user billing (EUB) for USSD services, but this will apply only to banks and telecom companies that meet the outlined payment obligations. Until the transition is complete, operators must follow the “10-second rule,” meaning sessions lasting less than 10 seconds will not incur charges. Banks using prepaid billing systems may migrate to EUB with regulatory approval.
Implications and Background
This directive comes amid growing pressure from telecom operators who have called for a clear payment framework to address the debt, which has strained the relationship between the banking and telecommunications sectors. USSD services are vital for financial inclusion in Nigeria, especially in rural areas with limited access to smartphones or the internet. Banks rely on USSD for mobile banking, airtime top-ups, bill payments, and other essential services.
The long-standing debt crisis has prompted telecom operators to threaten suspending USSD services if payments are not made. While smaller banks have begun settling their debts in installments, major banks responsible for a significant portion of the debt have made little progress, according to Gbenga Adebayo, Chairman of the Association of Licensed Telecom Operators of Nigeria. “Some repayments have been recorded, but they are far below expectations,” Adebayo told The PUNCH in November.
The CBN and NCC’s measures aim to stabilize both the financial and telecommunications sectors, ensuring the continued availability of USSD services for Nigerians across the country.
