The regulator warned that impacted banks would lose their USSD codes if they did not pay their obligations by January 27, 2025, in a public warning signed by NCC Director of Public Affairs Reuben Muoka. If the unpaid debts are not settled, these codes—which are essential for providing mobile banking services—may be transferred to other applicants.

N250b bank Debts – Telcos To Suspend USSD Services In Two Weeks

According to the notification, nine of the eighteen financial institutions had not paid their debts, which were previously estimated to be more than N200 billion, in spite of regulatory orders. The NCC pointed out that certain invoices had not been paid since 2020, indicating a protracted disagreement between the banks and telecom operators, even if the precise sum now due by the concerned banks was not made public.

The Nigerian Communications Commission (NCC) has issued a stern warning to nine financial institutions, authorizing telecommunications companies to disconnect their Unstructured Supplementary Service Data (USSD) codes due to outstanding debts.

According to the notice issued by the NCC, “the nine institutions listed below have failed to significantly comply 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,” according to the information provided to the commission as of close of business on Tuesday, January 14, 2025, of a total of 18 financial institutions.

The regulator stressed that banks are also unable to renew their USSD code assignments if they do not comply with the CBN-NCC joint circular. The warning went on to say: “The commission intends to notify customers that, as part of its consumer protection mandate, they may not be able to access the USSD platform of the impacted financial institutions starting on January 27, 2025.”

Fidelity Bank Plc, First City Monument Bank, Jaiz Bank Plc, Polaris Bank Limited, Sterling Bank Limited, United Bank for Africa Plc, Unity Bank Plc, Wema Bank Plc, and Zenith Bank Plc are among the financial institutions that are impacted.

The NCC stressed that the financial institutions had been properly informed of the necessity of rapid compliance and forewarned that, should the problem not be remedied, consumers may experience service interruptions.

This action draws attention to the long-standing conflict that has existed for years between financial institutions and telecoms firms about outstanding obligations linked to USSD. USSD still has a big impact on the banking industry in spite of this. Between January and June 2024, 252.06 million transactions totaling N2.19 trillion were made via USSD, according to CBN data.

Compared to 2023, when 630.6 million transactions totaling N4.84 trillion were made using USSD codes, this indicates a notable increase. USSD was initially created for services like airtime subscriptions and purchases, but it has now developed into an essential instrument for offering financial services to consumers without internet access.