Nigeria’s CBN and NCC Mandate ₦250 Billion USSD Debt Settlement Between Banks And Telecom Operators
The Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) have issued a joint directive requiring Deposit Money Banks (DMBs) to settle the long-standing ₦250 billion USSD debt owed to Mobile Network Operators (MNOs).
The circular, dated December 20, 2024, highlights the persistent challenges stemming from unpaid charges for USSD platform usage by banks. Despite previous interventions, the unresolved debt has strained relationships between the banking and telecommunications sectors.
Jointly signed by Oladimeji Taiwo, Acting Director of Payments System Management at the CBN, and Chizua Whyte, Head of Legal and Regulatory Services at the NCC, the circular emphasizes the need for immediate resolution and was obtained earlier this week.
Pre-API Debts: Banks are mandated to pay 60% of all outstanding invoices issued before the implementation of Application Programming Interfaces (APIs) in February 2022. This payment will serve as a full and final settlement for these older debts. Agreements must be finalized by January 2, 2025, with full payment completed by July 2, 2025.
Post-API Debts: Banks must settle 85% of all invoices incurred after the API rollout by December 31, 2024. Additionally, the same percentage of any future invoices must be cleared within one month of issuance.
Transition to End-User Billing (EUB)
To incentivize compliance, the regulators proposed transitioning to an End-User Billing (EUB) model. This shift would place the cost of USSD services directly on customers, removing banks from the billing process. However, only banks and telecom operators that meet payment obligations will be eligible for this model.
In a bid to foster cooperation, the regulators have ordered an immediate halt to all legal actions related to the USSD debt. A nationwide public awareness campaign is planned to educate Nigerians about the transition to EUB when implemented.
The circular warns of severe consequences for non-compliance, including fines and operational restrictions, underlining the regulators’ commitment to stabilizing the sectors and ensuring uninterrupted USSD financial services.
Resolving this debt dispute is expected to strengthen collaboration between Nigeria’s financial and telecommunications sectors, restore confidence, and prevent disruptions to USSD services relied upon by millions of Nigerians daily.
Source: Techenomomy
