NCC Cracks Down on Banks Over USSD Debt: Nine Institutions Face Service Disruption
The Nigerian Communications Commission (NCC) has issued a stern directive to telecommunications operators to disconnect the Unstructured Supplementary Service Data (USSD) codes assigned to nine financial institutions over unpaid debts.
This move, announced in a public notice signed by Reuben Muoka, the NCC’s Director of Public Affairs, gives the affected banks until January 27, 2025, to settle their outstanding obligations or risk losing access to the vital codes.
USSD codes, pivotal for mobile banking services, could be reassigned to other applicants if the debts remain unsettled. The regulator disclosed that, as of Tuesday’s close of business, nine of the 18 financial institutions involved had failed to comply with the directives.
While the cumulative debt initially owed exceeded ₦200 billion, the precise amount still unpaid remains undisclosed. Some invoices, the commission noted, date back to 2020, pointing to a long-standing financial dispute between banks and telecom operators.
In its notice, the NCC stated:
“By the information made available to the commission as at close of business on Tuesday, 14th January 2025, of a total of 18 financial institutions, the nine institutions listed below have failed to comply significantly with the directives in the Second Joint Circular of the Central Bank of Nigeria and the commission dated December 20, 2024, for the settlement of outstanding invoices due to MNOS, some since 2020.”
The commission also warned that failure to comply with the joint circular issued by the Central Bank of Nigeria (CBN) and the NCC disqualifies the banks from meeting renewal requirements for their USSD codes.
Among the affected banks are 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. Codes such as 770, 919, and 822 are among those that may become inaccessible.
In its consumer protection mandate, the NCC cautioned that customers might face disruptions to mobile banking services if the issues are not resolved. The notice underscores persistent tensions between telecom operators and financial institutions over USSD-related debts, a problem that has simmered for years.
Meanwhile, data from the CBN revealed that 252.06 million transactions worth ₦2.19 trillion were conducted via USSD between January and June 2024. This marked significant growth compared to 2023, when 630.6 million transactions valued at ₦4.84 trillion were recorded.
Initially introduced by telecom operators for services like airtime top-ups and subscriptions, USSD has evolved into a critical tool for financial inclusion, enabling mobile banking without Internet connectivity.
As the January deadline approaches, stakeholders and consumers alike will be watching closely to see whether the financial institutions resolve the impasse or risk further disruptions to Nigeria’s digital banking ecosystem.
