The Nigerian Communications Commission (NCC) has taken significant action by authorizing the disconnection of Unstructured Supplementary Service Data (USSD) codes for nine financial institutions due to unpaid debts. This important directive, issued via a public notice on Tuesday, mandates that these institutions must settle their outstanding financial obligations by January 27, 2025, or risk losing their access to essential USSD services.
These USSD codes are crucial for facilitating mobile banking, and failure to address the debts may result in the codes being reassigned to other applicants. As per the latest information, nine out of 18 financial institutions are currently non-compliant with regulatory requirements. While some banks have successfully cleared their debts, the total outstanding amount has been reported to exceed N200 billion, though the NCC has not specified the exact figure owed by the affected banks.
The NCC’s statement indicates that some invoices have remained unpaid since 2020, highlighting a prolonged financial dispute between these banks and telecom operators. The notice pointed out that, as of close of business on January 14, 2025, the nine institutions listed have significantly failed to adhere to the directives outlined in the joint circular issued by the Central Bank of Nigeria (CBN) and the NCC in December 2024 regarding the settlement of outstanding invoices.
The regulator’s notice also emphasizes that the failure to comply with the CBN-NCC joint circular affects the banks’ eligibility for the renewal of their USSD codes. Consumers are warned that access to USSD services from the affected banks may be disrupted from January 27, 2025, if compliance is not achieved.
The financial institutions facing disconnection 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. Notable USSD codes affected include 770, 919, and 822, among others.
The NCC has stressed that these financial institutions have been adequately notified of the necessity for immediate compliance, cautioning that customers may experience service disruptions if the issues remain unresolved. This development underscores ongoing tensions between telecommunications companies and financial institutions concerning unpaid USSD debts, a situation that has persisted for several years.
Recent data from the CBN has shown that between January and June 2024, there were 252.06 million transactions worth N2.19 trillion conducted via USSD, marking significant growth from 2023, which recorded 630.6 million transactions valued at N4.84 trillion. Initially created by telecom operators for services such as airtime purchases, USSD has evolved into a vital tool for financial services, allowing users to access banking without the need for an internet connection.
