USSD Codes: NCC Approves 9 Banks’ Disconnection

Consumers have expressed deep concerns over the planned disconnection of Unstructured Supplementary Service Data (USSD) services for nine banks by telecommunications companies (telcos) starting January 27, fearing that it will lead to financial exclusion for those who use the services.

This development, arising from unresolved financial disputes between telcos and banks, threatens to disrupt millions of lives, as USSD codes are essential for conducting financial transactions, especially in areas with limited internet access.

USSD services, which enable banking operations such as money transfers, bill payments, and balance inquiries without the internet, have been a critical tool for financial inclusion, particularly in rural Nigeria.

Unfortunately, the Nigerian Communications Commission (NCC) has approved telecom operators’ request to disconnect USSD services for nine banks over unpaid debts. The action, if implemented, will significantly hinder mobile banking services unless these banks resolve their outstanding obligations by January 27, 2025.

The affected banks include 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. These institutions reportedly owe substantial sums to telcos, with some debts dating back to 2020.

In a notice signed by its director of Public Affairs, Reuben Muoka, the NCC revealed that the disconnection was prompted by the banks’ failure to comply with a joint directive issued by the Central Bank of Nigeria (CBN) and the NCC on December 20, 2024.

The notice warned that if the debts remain unpaid, customers may face disruptions in accessing USSD services. It also highlighted the possibility of reassigning these USSD codes, such as 770, 919, and 822, to other applicants.

The NCC stated: “As of the close of business on Tuesday, January 14, 2025, nine financial institutions out of 18 have failed to comply significantly with the directives in the Second Joint Circular of the Central Bank of Nigeria and the commission for settling outstanding invoices due to mobile network operators, some dating back to 2020.”

Failure to comply with these directives also disqualifies the banks from renewing their USSD code assignments, the commission added.

If the disconnection proceeds, millions of Nigerians may face significant hurdles in accessing basic financial services. Small businesses, traders, and rural dwellers, who depend heavily on USSD for their transactions, are likely to be hit hardest.

A trader in Ojota, Lagos State, Sarah Olowokere, shared her concern, “I use USSD every day to check my balance and send money for goods. If this stops, I don’t know how my business will survive.”

Others worry that the disruption could push more people into financial exclusion, countering efforts to promote cashless transactions and financial inclusion in the country.

For Mummy Okiemute, a farmer in Sapele, Delta state, USSD services have been transformative, adding that the majority of Nigerians do not have money to buy smartphones to carry out internet banking. “With my ‘torchlight phone,’ I can receive alerts and send money at the comfort of my home. It won’t be funny if this service is no longer available,” she added.

She appealed to telcos and banks to resolve the issue urgently to prevent hardship for ordinary Nigerians.