Nine Nigerian Banks Make Progress on USSD Debt Payments, Averting Disconnection
Nine Nigerian banks have begun clearing their outstanding debts to telecommunication network operators for Unstructured Supplementary Service Data (USSD) services, averting a potential disconnection.
The Nigerian Communications Commission (NCC) had previously authorized telecom companies to disconnect USSD codes assigned to these nine financial institutions due to over N160 billion in unpaid debts.
The NCC’s public notice, signed by Director of Public Affairs Reuben Muoka, had set a deadline of January 27, 2025, for the banks to settle their obligations or risk losing their USSD codes.
These codes are crucial for mobile banking services, especially for customers without internet access, and could be reassigned if debts remained unresolved. Engineer Gbenga Adebayo, chairman of the Association of Licensed Telecommunications Operators of Nigeria, confirmed at a Telecoms CEO forum in Lagos that the situation has improved. “The matter has been de-escalated. Money has been paid, and we are making progress thanks to the regulators,” he stated.
The nine banks facing potential disconnection included 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.
The dispute originated in 2019 as banks began accruing charges for using USSD services provided by telecom companies. However, many banks faced difficulties in settling these charges, leading to the accumulation of the substantial debt.
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