The Nigerian Communications Commission (NCC) has directed telecommunications companies (telcos) to disconnect the unstructured supplementary service data (USSD) codes assigned to nine banks if they fail to pay their debts by January 27.

 

In a statement signed by Reuben Muoka, NCC director of public affairs, on Friday, the commission said the disconnection will take effect on January 27 if the banks do not pay outstanding debts.

 

The banks are Fidelity Bank (770), First City Monument Bank (329), Jaiz Bank (773), Polaris Bank Limited (833), Sterling Bank Limited (832), United Bank for Africa (919), Unity Bank (7799), Wema Bank (945), and Zenith Bank (966).

 

“Nigerian Communications Commission hereby notifies members of the public that it is grunting approval to Mobile Network Operators (MNOs) to disconnect Unstructuted Supplementary Service Data (USSD) Codes assigned by the Commission to financial institutions which are indebted to the MNOs if such institutions do not settle the outstanding invoices by Monday, January 27, 2025,” the statement reads.

 

“The Commission will thereafter recover such Codes and may reassign them to other applicants in accordance with the applicable instruments,

 

“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

 

“By the information made available to the Commission at close of business on Tuesday, 14th January 2025, of a total of 18 financial institutions, the 9 institutions listed below have failed to comply significantly with the directives in the Second Joint Circular of the Central Bank of Nigeria (CBN) and the Commission dated December 20, 2024 for the settlement of outstanding invoices due to MNOS, some since 2020.

 

“The financial institutions’ 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.

 

“The financial institutions have been duly notified of the need for immediate compliance in accordance with the Commission’s Guidelines on Short Code Operation in Nigeria, 2023.”

 

USSD DEBT INCREASED FROM N32BN TO N250BN WITHIN FIVE YEARS

 

On March 12, 2021, telcos threatened to suspend the USSD service over N42 billion debt accumulated by banks (the amount was N32 billion in 2019).

 

The move was, however, halted by Isa Pantami, former minister of communications and digital economy.

 

Over a year later, the Association of Licensed Telecommunications Operators of Nigeria (ALTON) said the USSD debt has increased to N80 billion as of November 2022.

 

By November 16, 2023, the debt, according to telcos, had increased to N200 billion — up from N120 billion in May of the same year.

 

On October 22, 2024, Gbolahan Awonuga, the executive secretary of ALTON, said the amount had increased to N250 billion.

 

The NCC, the Central Bank of Nigeria (CBN), and other stakeholders have been engaging to find a lasting solution to the impasse, but efforts at resolving the matter have had little results.

 

On December 24, 2024, the CBN and the NCC directed mobile network operators (MNOs) and deposit money banks (DMBs) to settle the protracted debt conflict, asking financial institutions to pay 85 percent of all outstanding invoices by December 31, 2024.