The Nigerian Communications Commission, NCC has given telecommunications companies operating in the country, January 27 as deadline to disconnect the Unstructured Supplementary Service Data, USSD, codes assigned to nine financial institutions over unpaid debts.
This was contained in a directive signed by NCC’s Director of Public Affairs, Reuben Muoka in a Tuesday.
According to the directive, the affected banks must settle their outstanding obligations by January 27, 2025, or risk losing access to their USSD codes.
NCC warns that these codes, which are essential for enabling mobile banking services, could be reassigned to other applicants. This is in the event that the debts remain unresolved.
The Commission revealed that, as of Tuesday’s close of business, nine out of 18 financial institutions had not complied with regulatory directives.
While other banks have cleared their debts, the total amount initially owed by the financial institutions was reported to exceed N200 billion.
NCC, however, did not disclose the precise debt currently owed by the affected banks.
“Some of the unpaid invoices have remained unpaid since 2020. Indicating a prolonged financial dispute between the banks and telecom operators,” NCC said.
Part of the notice read, “By the information made available to the Commission as at close of business on Tuesday, 14th January 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, the Commission dated December 20, 2024, for the settlement of outstanding invoices due to MNOS, some since 2020.”
The Commission also noted that banks’ failure to comply with the CBN-NCC joint circular also means that they are unable to meet the good standing requirements for the renewal of the USSD codes assigned to them by the commission.
“In fulfilment of its consumer protection mandate, the Commission wishes to inform consumers that they may be unable to access the USSD platform of the affected financial institutions from January 27, 2025,” it added.
NCC listed the affected financial institutions to include Fidelity Bank Plc, First City Monument Bank, and Jaiz Bank Plc. Others are Polaris Bank Limited, Sterling Bank Limited, United Bank for Africa Plc, Unity Bank Plc, Wema Bank Plc, and Zenith Bank Plc.
The Commission listed the affected USSD codes as 770, 919, and 822, among others.
The NCC emphasized that the financial institutions had been duly notified of the need for immediate compliance. It also warned that consumers may face service disruptions if the issues remain unresolved.
Recall that this development highlights ongoing tensions between telecommunications companies and financial institutions over unpaid USSD-related debts. A challenge that has persisted for years.
Meanwhile, data from the CBN revealed that 252.06 million transactions worth N2.19 trillion were conducted via USSD between January and June 2024, The PUNCH reported.
This represents a significant growth compared to 2023 when 630.6 million transactions valued at N4.84tn were completed using USSD codes.
The USSD codes were originally designed by telecom operators for services like airtime purchases and subscriptions. However, the USSD has become a key tool in the banking sector, offering financial services to users without requiring an Internet connection.
source: Punch
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