Nigeria: Telecoms, Banking Regulators Issue Joint Directive On Resolving Lingering N250 Billion USSD Debt Imbroglio
By Angeline Mgbele, Bureau Chief, Northern Nigeria
Following the protracted N250 billion Unstructured Supplementary Service Data (USSD) debt impasse between Deposit Money Banks (DMBs) and Mobile Network Operators (MNOs), regulators of the banking and telecommunications sectors, the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) respectively, have issued a final directive to resolve the issue.
In a joint circular dated December 20, 2024, the acting Director of Payments System Management at the CBN, Oladimeji Taiwo, and the Head of Legal and Regulatory Services at the NCC, Chizua Whyte, rolled out a structured payment plan for clearing the debt and introduced new operational guidelines for USSD services.
Cyber Era NG learns that for debts incurred prior to the implementation of Application Programming Interfaces(APIs) in February 2022, the directive mandates that 60 per cent of these debts must be paid as full and final settlement.
As per the joint statement from the CBN and NCC, payment agreements, either in lump sums or installments, are required to be finalized by January 2, 2025, with full settlement due by July 2, 2025.
Additionally, the CBN and NCC have instructed banks to settle 85 per cent of all outstanding invoices by December 31, 2024, for debts arising after February 2022, and to ensure that 85 per cent of future invoices are settled within one month of issuance.
In an effort to facilitate the resolution process, Both regulators have directed the parties involved to discontinue all ongoing litigations related to the USSD debt issue, with a proviso that observing this directive in the breach, may result in severe regulatory sanctions.
The statement reads in part: “In view of the foregoing, the CBN and NCC hereby direct that all DMBs and MNOs adhere strictly to the outlined payment terms to ensure final resolution of this matter. Failure to comply will result in sanctions.”
The move comes amid mounting pressure from telecom operators, who had earlier called for a clear payment framework to address the debt, which has strained relationships between the banking and telecom sectors.
Furthermore, the regulators emphasized the transition to end-user billing for USSD services, noting that it would only apply to banks and telcos that met the outlined payment obligations.
Pending this transition, operators are required to implement a “10-seconds rule,” ensuring sessions shorter than 10 seconds are not billed.
The circular further highlighted the opportunity for banks currently using prepaid billing systems to migrate to End User Billing (EUB), subject to regulatory approval.
The CBN and NCC reiterated their commitment to resolving the debt impasse, stating that the measures are aimed at fostering stability in both the financial and telecommunications sectors while ensuring the continued availability of USSD services for Nigerians.
In Nigeria, as in other jurisdictions… USSD is important for financial inclusion, especially in rural areas where smartphone penetration and internet access are limited.
Banks heavily rely on it, especially for mobile banking services, and it is also used for services like airtime top-ups, bill payments, and other telecom services.
The debt crisis has persisted for years, with telecom operators threatening to suspend USSD services unless payments are made, but the CBN and NCC, among other interests, have had to intervene to prevent this from happening.
We gather that while smaller banks have begun repaying their obligations in installments, tier-one lender allegedly responsible for the bulk of the debts, are yet to make substantial payments, according to the Chairman of the Association of Licensed Telecom Operators of Nigeria(ALTON), Engr. Gbenga Adebayo.
