NCC Deadline Spurs Five Nigerian Banks to Settle N160 Billion USSD Debt to Avoid Disconnection

With the Nigerian Communications Commission (NCC) setting a January 27 deadline to disconnect USSD access for defaulting banks, five out of nine financial institutions have begun clearing portions of the N160 billion debt owed to telecommunication companies.

The debt, which has been unresolved since 2019, led the NCC to issue a warning on January 15 that the USSD platforms of the affected banks would be shut down if payments were not made. The banks listed 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.

A source within the NCC disclosed that progress has been made, with five banks making payments. “Only four or fewer banks are yet to respond, but progress has been encouraging since the announcement,” the source noted. However, another industry insider confirmed that significant amounts remain unpaid.

The USSD debt dispute, which has dragged on for years, forced regulatory intervention from both the Central Bank of Nigeria (CBN) and the NCC. In December 2024, a joint directive from the CBN and NCC required banks to settle at least 85% of their outstanding USSD invoices by December 31. Following the directive, nine banks reportedly paid over 90% of their obligations, but others failed to meet the deadline.

The NCC, in its latest communication, warned that non-compliance would result in disconnection and could also affect the renewal of USSD codes for the defaulting banks. “Failure to comply also means these institutions cannot meet the Good Standing requirements for code renewal,” the statement read.

USSD is an essential tool for millions of Nigerians, providing access to banking services for those without smartphones or internet connectivity. A disruption of this service could create significant challenges for consumers who rely on the platform for financial transactions.

As the deadline approaches, pressure is mounting on the remaining banks to settle their debts and avoid disconnection, ensuring uninterrupted banking services for their customers.