N160bn USSD Debt: 5 Banks Rush To Meet Disconnection Deadline

As the Nigerian Communications Commission’s (NCC) January 27 deadline expired yesterday, at least five of the nine indebted banks have made payments, signaling progress in addressing the longstanding N160 billion debt dispute over Unstructured Supplementary Service Data (USSD) infrastructure costs.

The NCC had, in a January 15 notice, warned that banks which fail to settle their debts would face disconnection from USSD services, a critical platform for mobile banking.

Such disconnection would significantly disrupt financial transactions for millions of Nigerians who rely on USSD services for essential banking activities.

Among the affected banks are Fidelity Bank Plc, First City Monument Bank, Zenith Bank Plc, Wema Bank Plc, and United Bank for Africa Plc.

A top source at the NCC revealed that most of the banks had begun responding to the directive.

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“Only four or fewer banks are yet to pay. They have been responding since the announcement, and progress is being made,” the source stated.

However, some industry insiders noted that a number of the banks still have  outstanding debts to clear.

The dispute, which dates back to 2019, stems from disagreements between banks and telecom operators over payments for USSD infrastructure usage. Efforts to resolve the issue intensified after regulators, including the Central Bank of Nigeria (CBN) and the NCC, intervened.

In a joint directive issued in December 2024, the CBN and NCC instructed banks to settle 85 per cent of their outstanding invoices by December 31, 2024. While some banks complied, others fell short, prompting the NCC to set the January 27 ultimatum.

LEADERSHIP reports that USSD services play a pivotal role in Nigeria’s financial ecosystem, particularly for rural and underserved populations with limited access to internet banking. Any disruption to these services could hinder access to crucial financial transactions such as funds transfers, airtime purchases, and bill payments.