The Nigerian Communications Commission (NCC) has directed telecommunications companies to disconnect the Unstructured Supplementary Service Data (USSD) codes assigned to nine financial institutions due to outstanding debts.
This directive was issued in a public notice on Tuesday, signed by the NCC’s Director of Public Affairs, Reuben Muoka.
The telecom regulator stated that the affected banks must settle their outstanding obligations by January 27, 2025, or risk losing access to their USSD codes. These codes, crucial for enabling mobile banking services, could be reassigned to other applicants if the debts remain unpaid.
As of Tuesday’s close of business, the NCC revealed that nine out of 18 financial institutions had failed to comply with the regulatory directives. While several other banks have cleared their debts, the total amount initially owed by the institutions was reported to exceed N200 billion, although the precise current debt of the affected banks was not disclosed.
Some of the unpaid invoices have reportedly remained unsettled since 2020, reflecting an ongoing financial dispute between the banks and telecom operators.
Part of the NCC’s notice stated: “As of close of business on Tuesday, 14th January 2025, of the 18 financial institutions, nine have failed to comply with the directives in the Second Joint Circular of the Central Bank of Nigeria (CBN) and the Commission, dated December 20, 2024, regarding the settlement of outstanding invoices due to Mobile Network Operators (MNOs), some of which have been due since 2020.”
The NCC further explained that the banks’ failure to comply with the CBN-NCC joint circular means they are unable to meet the necessary requirements for the renewal of their USSD codes.
“In line with its consumer protection mandate, the Commission wishes to inform consumers that they may be unable to access the USSD platforms of the affected financial institutions from January 27, 2025,” the notice added.
The financial institutions affected by this development include Fidelity Bank Plc, First City Monument Bank (FCMB), Jaiz Bank Plc, Polaris Bank Limited, Sterling Bank Limited, United Bank for Africa (UBA) Plc, Unity Bank Plc, Wema Bank Plc, and Zenith Bank Plc. The impacted USSD codes include 770, 919, and 822, among others.
The NCC stressed that these institutions had been properly notified of the need for immediate compliance and warned that consumers could face disruptions to services if the issues remain unresolved.
This development underscores the ongoing tensions between telecom companies and financial institutions over unpaid USSD-related debts, a challenge that has persisted for several years.
Meanwhile, data from the CBN revealed that between January and June 2024, 252.06 million transactions, valued at N2.19 trillion, were conducted via USSD. This marks significant growth compared to 2023, when 630.6 million transactions, worth N4.84 trillion, were completed using USSD codes.
Initially designed for services such as airtime purchases and subscriptions, USSD has become a vital tool in the banking sector, enabling financial transactions without the need for an internet connection.
