The Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) have instructed banks and telecommunications companies to settle the outstanding N250 billion debt owed to telcos by banks. This directive has several implications
The debt settlement will ensure that USSD services remain available to Nigerians, especially in rural areas with low internet connectivity
A payment plan that requires banks to pay 60% of the debt incurred before February 2022 as a full and final settlement must be in place. Payment agreements must be finalized by January 2, 2025, and full settlement is required by July 2, 2025
The structured payment also requires that Banks pay 85% of outstanding invoices by December 31, 2024, for debts incurred after February 2022. Future invoices must be settled within a month of issuance.
Non-compliance with the directives will attract sanctions against the parties involved from the CBN and NCC.
The transition to end-user billing (EUB) for USSD services will only apply to compliant banks and telcos.
Telcos must enforce a “10-second rule” to ensure that sessions lasting less than 10 seconds are not invoiced.
The directive aims to promote stability in the banking and telecommunications sectors while ensuring the continuous availability of USSD services.
Telcos had threatened to stop USSD services if payments were not made, which would have affected financial inclusion in Nigeria
The Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) issued a final directive to resolve the long-standing N250 billion Unstructured Supplementary Service Data (USSD) debt dispute between Deposit Money Banks (DMBs) and Mobile Network Operators (MNOs).
The two agencies in a joint circular dated December 20, 2024, 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 for clearing the debt and introduced new operational guidelines for USSD services.
To facilitate the resolution process, both regulators have directed the parties to discontinue all ongoing litigation related to the USSD debt issue, warning that non-compliance may result in severe regulatory sanctions.
“Because of the foregoing, the CBN and NCC hereby direct that all DMBs and MNOs adhere strictly to the outlined payment terms to ensure final resolution. Failure to comply will result in sanctions,” the circular stated.
The move comes amid mounting pressure from telecom operators, who had earlier called for a clear payment framework to address the debt, which has strained relationships between the banking and telecom sectors.
The CBN and NCC reiterated their commitment to resolving the debt impasse, stating that the measures are aimed at fostering stability in both the financial and telecommunications sectors while ensuring the continued availability of USSD services for Nigerians.
In Nigeria, USSD is vital for financial inclusion, particularly in rural areas where smartphone penetration and internet access are limited.
Banks heavily rely on it, especially for mobile banking services, and it is also used for services like airtime top-ups, bill payments, and other telecom services.
The debt crisis has persisted for years, with telecom operators threatening to suspend USSD services unless payments are made.
