By Abiola Olawale
The Nigerian Communications Commission (NCC) has issued directives to telecommunications companies to disconnect a total of nine financial institutions due to an ongoing dispute over Unstructured Supplementary Service Data (USSD) debt.
The directive signed by NCC’s Director of Public Affairs, Reuben Muoka on Tuesday noted that the affected banks are to pay the outstanding debts by January 27, 2025, or risk losing access to their USSD codes.
The affected financial institutions 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.
While the NCC didn’t officially reveal the amount of the debt, the development comes admist report that the debt in question has escalated over time, increasing to over N250 billion by the end of 2024.
It was gathered that the situation stemmed from a long-standing disagreement between mobile network operators (MNOs) and deposit money banks (DMBs) regarding the payment for USSD services used for banking transactions.
The NCC said it has attempted multiple interventions, including a significant joint directive in December 2024, which set specific terms for debt settlement.
According to the agency, despite these efforts, the banks allegedly failed to meet payment obligations, leading to its current action.
Part of the notice reads: “By the information made available to the commission as at close of business on Tuesday, 14th January 2025, of a total of 18 financial institutions, the nine institutions listed below have failed to comply significantly with the directives in the Second Joint Circular of the Central Bank of Nigeria and the commission dated December 20, 2024, for the settlement of outstanding invoices due to MNOS, some since 2020.”
The affected USSD codes include 770, 919, and 822, among others, and could be reassigned to other applicants if the debts remain unresolved.
The notice added: “In fulfilment of its consumer protection mandate, the commission wishes to inform consumers that they may be unable to access the USSD platform of the affected financial institutions from January 27, 2025.”
The New Diplomat reports that the development has been escalating concerns among Nigerians as the impact of this disconnection could be significant, affecting millions of Nigerians who rely on USSD for basic banking services like transfers, balance checks, and bill payments
