Banks scramble to repay N250 billion USSD debt to avert disconnection

Joshua Fagbemi
The banks had been told that their USSD service will be disconnected
N250bn debt: NCC orders telcos to disconnect USSD codes of 9 defaulting banks by Jan 27
USSD code

Nigerian commercial banks have made significant progress in repaying their Unstructured Supplementary Service Data (USSD) debts. The new development prevented the disconnection of the services by telecom operators as directed by the Nigerian Communications Commission (NCC).

Recall that the communications regulator authorized telecom operators like MTN, Airtel, and Glo to disconnect the Unstructured Supplementary Service Data (USSD) codes of nine banks yet to pay their USSD debts. This debt amounted to a total of N250 billion.

Reports, however, have it that the nine banks that were at risk of disconnection due to the debt have made worthwhile progress in clearing their liabilities, ensuring continued access to the USSD platform which is vital for customers without internet access.

The nine defaulting banks that would have seen their USSD codes disconnected include Fidelity Bank Plc with the 770 USSD code, First City Monument Bank (*329#), Jaiz Bank Plc (*773), and Polaris Bank Limited (*833#). Others are Sterling Bank Limited (*822#), United Bank for Africa Plc (*919#), Unity Bank Plc (*7799#), Wema Bank Plc (*945#), and Zenith Bank Plc (*966#).

Nigerian Banks

Confirming the development, the Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), Gbenga Adebayo, stated that the matter had been arrested.

The matter has been de-escalated. Money has been paid, and we are making progress thanks to the regulators,” he said.

This enforcement is part of the first phase of a structured payment plan outlined in a December 20, 2024 memo from the NCC and the Central Bank of Nigeria. The memo details a three-phase payment obligation for banks to settle the N250bn debt, with specific deadlines for each phase.

The regulator earlier warned all nine banks who were yet to clear their debts to do so on or before January 27, 2025, or risk losing access to their USSD codes. 

By the information made available to the commission as at close of business on Tuesday, January 14, 2025, of a total of 18 financial institutions, the nine institutions listed below have failed to comply significantly with the directives in the Second Joint Circular of the Central Bank of Nigeria and the commission dated December 20, 2024, for the settlement of outstanding invoices due to MNOS, some since 2020,” part of the NCC’s notice read.

Also Read: USSD code of 9 banks set to be disconnected today over lingering N250bn debts.

Interventions on the USSD debt

The USSD debt issue has lingered following periods of dispute between mobile operators and commercial banks. 

Mobile operators intensified their clamour over the unpaid debt, stressing its effect on their businesses. They also threatened to shut down USSD services due to incurring losses, a move that was halted following interventions by government authorities.

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

Both parties’ regulators had previously taken actions to settle the matter. In December, a joint statement issued by both NCC and the Central Bank of Nigeria (CBN) in December directed commercial banks and telecom operators to resolve the dispute through a document outlining the payment procedures and operational guidelines to follow when clearing the debts. 

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.

The document also mandated that 60 per cent of the debts incurred before the implementation of Application Programming Interfaces in February 2022 must be finalized by January 2, 2025, with full settlement due by July 2, 2025.

Last week, while reinstating their position, Gbenga Adebayo explained that actions in line with the NCC directives will be taken against banks that fail to adhere.

A number of them are complying in line with the regulatory intervention made by the CBN and NCC. We still have a few hard debtors who haven’t complied, but when the time comes, according to the protocol of that circular, we are going to disconnect,” Adebayo said.

USSD Code
USSD Code

President of the Association of Telecom Companies of Nigeria, Tony Emoekpere, noted last week that there were nine indebted banks, although he does not have the details now on how many of them have settled. He added that the Group would have to wait and get updates from mobile operators.

USSD has evolved into a vital financial tool, providing banking services to users without the need for an internet connection. It has been a vital service enabling customers to conduct banking transactions without Internet access.


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