The threat of disconnection looms over nine Nigerian banks due to unpaid USSD debts. With the January 27 deadline set by the Nigerian Communications Commission (NCC), several banks have started making partial payments, while others seek negotiations to avoid disruptions to their USSD services.
USSD banking, a critical tool for millions of Nigerians to access financial services like transfers and bill payments, is at risk as telecom operators prepare to disconnect defaulters. Sources within the telecom industry confirm that the debt, which has accumulated to approximately ₦160 billion, stems from unresolved payment disputes.
Telecom operators have criticized the regulator for delayed enforcement, which they argue allowed the debt to escalate. An industry insider stated, “If actions had been taken earlier, this situation could have been avoided. Now, the banks are acting only because their revenue and customer base are at stake.”
In December 2024, the NCC and the Central Bank of Nigeria (CBN) issued a joint circular mandating banks to settle 85% of outstanding debts for recent invoices and 60% of older invoices by specific deadlines. The circular also required banks to finalize payment plans by early January 2025, with all outstanding amounts to be cleared by mid-2025.
The NCC has reaffirmed its commitment to ensuring compliance, emphasizing that the disconnection of USSD services will proceed if banks fail to meet the January 27 deadline. Fidelity Bank, UBA, Zenith Bank, and others are among the affected institutions facing potential service disruptions.
This development highlights the ongoing challenges in resolving disputes between banks and telecom operators, with both parties urged to prioritize transparency and collaboration to prevent future issues.
