Telecommunication operators in Nigeria have received approval from the Nigerian Communications Commission (NCC) to suspend Unstructured Supplementary Service Data (USSD) services for banks that fail to settle outstanding debts amounting to ₦250 billion.
This suspension, set to last two weeks, will allow customers of non-compliant banks to migrate to other banks meeting the NCC’s payment directives. If the debts remain unsettled after this period, the affected banks will face complete disconnection from USSD platforms.
In a circular issued on December 20, 2024, the NCC and the Central Bank of Nigeria (CBN) directed Deposit Money Banks (DMBs) to pay 85% of the outstanding debts—equivalent to ₦212.5 billion. Despite this directive, only four banks have made substantial payments, while 18 others have either refused or delayed payments.
The telecom operators had earlier written off 40% of the accumulated debt, leaving banks to pay the remaining 60%. However, many banks continue to resist payment, citing the outdated nature of USSD technology.
Key industry players, including the Association of Licensed Telecom Companies of Nigeria (ALTON), have expressed frustration over the growing debt. ALTON Chairman Gbenga Adebayo highlighted that smaller banks have complied, whereas larger institutions such as GTBank and Access Bank remain non-compliant.
Telecom operators argue that the unpaid debts significantly affect their finances and operations. MTN Nigeria CEO Karl Toriola stated that disconnection is now the only viable option after years of delays and disputes.
The NCC has warned of further sanctions for non-compliance, including fines, operational restrictions, and potential legal actions. The commission has also introduced End-user Billing (EUB) as a long-term solution, which will shift payment responsibilities directly to customers, incentivizing banks to clear their debts promptly.
With the looming suspension of USSD services, millions of Nigerians reliant on these platforms for financial transactions may face disruptions. As the deadline approaches, the pressure is on non-compliant banks to settle their debts or risk losing access to telecom platforms entirely.
