The Nigerian Communications Commission (NCC) has authorized mobile network operators, including MTN, Airtel, Globacom, and 9mobile, to disconnect the USSD codes of nine commercial banks due to unpaid debts for USSD services. These services, which enable mobile banking, have been at the center of a prolonged dispute between telecom operators and financial institutions.
Banks at Risk of Disconnection
The affected banks include First City Monument Bank (FCMB), Zenith Bank, Sterling Bank, Jaiz Bank, United Bank for Africa (UBA), Polaris Bank, Unity Bank, Fidelity Bank, and Wema Bank. If disconnection occurs, millions of customers relying on USSD platforms for transactions will face interruptions.
Grace Period for Settlement
In a statement issued by the NCC on Wednesday, the Commission announced a two-week grace period for the banks to settle their debts. Failure to do so by January 27, 2025, could result in the withdrawal of their USSD codes. These codes may then be reassigned to other applicants in line with NCC guidelines.
Reuben Muoka, Director of Public Affairs at the NCC, explained that the decision stems from the banks’ non-compliance with the directives of a joint circular issued by the Central Bank of Nigeria (CBN) and NCC in December 2024. The circular required financial institutions to clear outstanding payments owed to telecom operators, with some debts dating back to 2020.
Outstanding Debt and Compliance Issues
Of the 18 financial institutions using USSD services, the nine banks in question are the only ones significantly behind on payments. Their failure to comply with the circular has also disqualified them from meeting the “Good Standing” requirements necessary for renewing their USSD codes.
The NCC emphasized its commitment to consumer protection, acknowledging that customers of these banks may face disruptions if the disconnections proceed.
Background of the Dispute
For years, telecom operators have expressed frustration over the accumulation of unpaid USSD debts, which reportedly reached ₦120 billion by 2023. Despite previous threats to disconnect the services, the operators could not act without regulatory approval.
In December 2024, the CBN and NCC issued a joint circular mandating the settlement of debts and the establishment of payment plans. The directive also required banks to halt legal actions related to the debt.
Looking Ahead
With the NCC’s recent approval, telecom operators now have the backing to enforce the disconnection of USSD services, marking a significant step toward resolving the long-standing financial dispute. Customers are urged to prepare for potential disruptions and seek alternative transaction methods if the affected banks fail to meet the January 27 deadline.
This development highlights the critical role of regulatory oversight in balancing the interests of telecom operators, financial institutions, and consumers in Nigeria’s digital economy.
