The Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) have issued a directive for Deposit Money Banks (DMBs) and Mobile Network Operators (MNOs) to resolve a long-standing dispute over N250 billion in Unstructured Supplementary Service Data (USSD) debt.
In a joint circular dated December 20, 2024, the regulators outlined measures to end the disagreement. Signed by Oladimeji Taiwo, Acting Director of the Payments System Management Department at the CBN, and Chizua Whyte, Head of Legal and Regulatory Services at the NCC, the circular provides a framework for resolving the issue. DMBs must pay 60% of outstanding pre-API invoices as a full settlement by January 2, 2025, with installments allowed until July 2, 2025. Additionally, 85% of post-API invoices must be paid by December 31, 2024, and all future invoices must be settled within one month.
Both parties have been instructed to immediately halt all legal actions related to the debt issue. The circular also requires MNOs to adopt a “10-second rule,” meaning USSD sessions under 10 seconds will not be billed. Furthermore, DMBs using prepaid billing systems have the option to migrate to Enhanced USSD Billing (EUB), provided they fulfill the necessary regulatory requirements.
Failure to comply with these directives will result in sanctions from the CBN and NCC. The circular also mentions plans for a public enlightenment campaign to educate users about the changes, aiming to foster transparency and improve the overall customer experience.
This directive follows years of tension between the financial and telecommunications sectors over USSD service charges and debts. The regulators hope that by addressing the issue, they can restore stability and cooperation between the two sectors.
