FG Sets 6-Month Deadline for Banks, Telcos to Pay ₦250bn USSD Debt

Written By: Flipbz.org

The Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) have issued a final directive to Deposit Money Banks (DMBs) and Mobile Network Operators (MNOs) to resolve the long-standing N250bn Unstructured Supplementary Service Data (USSD) debt dispute.

As regulatory bodies of the Federal Government, the CBN and NCC released the directive in a joint circular dated December 20, 2024. The document was signed by Oladimeji Taiwo, acting Director of Payments System Management at the CBN, and Chizua Whyte, Head of Legal and Regulatory Services at the NCC.

Obtained exclusively by our correspondent, the circular outlined a structured payment plan to clear the debt and introduced updated operational guidelines for USSD services.

According to the directive, 60% of debts incurred before February 2022, when Application Programming Interfaces were implemented, must be paid as a full and final settlement. Payment agreements, either as lump sums or instalments, must be finalised by January 2, 2025, with the total settlement due by July 2, 2025.

For debts accrued after February 2022, the directive requires banks to settle 85% of all outstanding invoices by December 31, 2024, and ensure 85% of future invoices are paid within one month of issuance.

The regulators also instructed all parties to discontinue ongoing litigation concerning the USSD debt and warned that non-compliance would result in severe penalties.

“To this end, the CBN and NCC direct that all DMBs and MNOs strictly adhere to the specified payment terms to ensure a final resolution of this issue. Non-compliance will attract sanctions,” the circular emphasized.

This development follows increasing pressure from telecom operators, who had previously demanded a clear payment structure to address the debt, which has strained relations between the banking and telecom sectors.

Additionally, the regulators emphasized the transition to end-user billing for USSD services, noting that it would only apply to banks and telcos that meet 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 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.

USSD is vital for financial inclusion in Nigeria, particularly 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.

For years the debt crises has persisted, with telecom operators threatening to suspend USSD services unless payments are made.

While smaller banks have reportedly begun repaying their obligations in installments, tier-one lenders—responsible for the bulk of the debt—are yet to make significant payments, according to the Chairman of the Association of Licensed Telecom Operators of Nigeria, Gbenga Adebayo.

“Some repayments have been recorded, but they fall short of expectations,” Adebayo told The PUNCH in November.

Source:https://punchng.com/fg-gives-banks-telcos-six-month-ultimatum-on-n250bn-ussd-debt/#google_vignette