N250bn ussd debt: CBN, NCC issue final notice on telecom operators and banks dispute

Joshua Fagbemi
Nigerian Banks

In line with the N250bn Unstructured Supplementary Service Data (USSD) debt issue, the Nigerian Communications Commission (NCC) and Central Bank of Nigeria (CBN) have directed commercial banks and telecom operators to resolve the dispute. 

The notice, which was tagged as the final directive, was issued on December 20 in a joint circular 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.

The document provided by both agencies outlined the new payment procedure and operational guidelines for commercial banks to follow when clearing the debts. 

What You Should Know as Tussle between Banks and Telcos over N42bn USSD Debt Drags on

As such, 60 per cent of the debts incurred before the implementation of Application Programming Interfaces in February 2022 must be paid as a full and final settlement. The payment must be finalized by January 2, 2025, with full settlement due by July 2, 2025.

In addition, the agencies stressed that 85 per cent of USSD debts that accumulated after February 2022 in terms of their outstanding invoices must be paid by December 31, 2024. Commercial banks are to also ensure that 85 per cent of future invoices are settled within one month of issuance.

“In view 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 of this matter. Failure to comply will result in sanctions,” the statement reads.

CBN and NCC also stated that the transition to end-user billing for USSD services would only apply to commercial banks and telcos that meet the outlined payment obligations. With this, mobile operators have been mandated to implement a “10-second rule,” where sessions shorter than 10 seconds are not being charged. 

CBN Releases New Regulations and Sanctions for Electronic Payments in Banks and Other Financial Institution
Central Bank of Nigeria

However, the regulators also mandated both parties to cut off all ongoing litigation related to the USSD debt issue, placing a warning that non-compliance would attract necessary sanctions.

While stating the need for measures to maintain stability in both the financial and telecommunications sectors, both agencies reinstate their commitment to settling the over-long USSD debt dispute between commercial banks and mobile operators.

Developments on the USSD debts

The final directive and intervention from the apex bank and NCC come amidst several calls from telecom operators on the N250bn USSD debts owed by banks.

For the past few months, mobile operators have raised concerns over the effect of the unpaid debt. The USSD service allows bank customers to perform digital financial transactions without an internet connection.

Telecom operators have since threatened to shut down USSD services due to incurring losses. The moves were halted following interventions by government authorities.

MTN Nigeria CEO, Karl Toriola said in October that the telecommunications sector has incurred huge losses that require significant intervention. He added that MTN, the largest telecommunications company in the country with about 78 million subscribers, recorded a loss of N519.1bn for the first half of 2024.

Here is a list of all the new USSD codes for MTN, Airtel and Glo

While he was calling for immediate intervention in the debts, he pointed out that the company is now surviving on the reserves it has accumulated in two decades. “We must return the industry to profitability,” he stated, emphasizing the urgent need for reformation.

Meanwhile, mobile operators experienced progress in repaying the N250 billion debt owed on Unstructured Supplementary Service Data (USSD) services rendered to commercial banks last month. 

According to reports from the Association of Licensed Telecom Operators of Nigeria (ALTON), smaller banks started the process of clearing their debts, while tier-one lenders who take a larger share were yet to make a tangible mark.  

Gbenga Adebayo, the ALTON Chairman expressed that although some repayments have been recorded but still fall below expectations. “We are seeing payments from smaller players, but the big banks, which owe the most, have not been forthcoming. We are now waiting for intervention from regulators, including the Central Bank of Nigeria and the Nigerian Communications Commission, to resolve the issue,” he said.

He stressed that telecom operators could be forced to cut off USSD for banks if the debt is not resolved. His call for CBN and NCC’s intervention on the issue a month ago has now been heard with both agencies rolling out a last directive and procedure phase. 

Also Read: N250bn USSD debt repayment: smaller banks complying, big banks aloof.


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