Because nine financial institutions owe money, the Nigerian Communications Commission has given telecom operators permission to terminate their Unstructured Supplementary Service Data codes.
This decision was issued in a public notification signed by Reuben Muoka, the Director of Public Affairs at NCC, on Tuesday.
Affected banks face losing their USSD codes if they don’t pay their outstanding debts by January 27, 2025, according to the telecom regulator.
These codes, which are necessary to activate mobile banking services, can be transferred to other applicants in the event that the debts are not settled.
The commission disclosed that nine of the eighteen financial institutions had failed to comply with regulatory requirements as of Tuesday’s business close.
It was stated that the total sum initially due by the financial institutions exceeded N200 billion, even though other banks have paid off their loans.
The exact amount of debt that the impacted banks currently owe, however, was not disclosed by the regulator.
Some of the outstanding payments, according to the NCC, have not been paid since 2020, suggesting a protracted financial battle between the banks and telecom carriers.
“According to the information provided to the commission as of close of business on Tuesday, January 14, 2025, of a total of 18 financial institutions, the nine institutions listed below have failed to significantly comply 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 notice stated in part.
According to the regulator, banks that disregard the CBN-NCC joint circular will also be unable to fulfill the good standing conditions for the commission’s assignment of USSD numbers to be renewed.
“The commission would like to notify consumers that, as part of its consumer protection mandate, they may not be able to access the USSD platform of the affected financial institutions starting on January 27, 2025,” it continued.
United Bank for Africa Plc, Unity Bank Plc, Wema Bank Plc, Zenith Bank Plc, Jaiz Bank Plc, Polaris Bank Limited, Sterling Bank Limited, Fidelity Bank Plc, and First City Monument Bank are among the financial institutions impacted.
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Among the USSD codes that are impacted are 770, 919, and 822.
Reiterating that the financial institutions had been properly informed of the necessity of rapid compliance, the NCC cautioned that if the problems are not fixed, customers may experience service interruptions.
This development brings to light the long-standing conflict between financial institutions and telecoms firms about unpaid bills relating to the USSD.
Between January and June 2024, 252.06 million transactions totaling N2.19 trillion were made via USSD, according to data from the CBN.
This is a notable increase over 2023, when USSD codes were used to accomplish 630.6 million transactions totaling N4.84 trillion.
By providing financial services to consumers without requiring an Internet connection, USSD—which was first created by telecom operators for purposes such as airtime purchases and subscriptions—has emerged as a crucial instrument in the banking industry.
