The Federal Government, through the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC), has issued a final ultimatum to Deposit Money Banks (DMBs) and Mobile Network Operators (MNOs) to resolve the long-standing N250 billion Unstructured Supplementary Service Data (USSD) debt dispute.
In a joint circular released on December 20, 2024, the regulatory bodies outlined a structured payment plan to clear the debt, alongside new operational guidelines for USSD services.
The circular was signed by Oladimeji Taiwo, the Acting Director of Payments System Management at the CBN, and Chizua Whyte, the Head of Legal and Regulatory Services at the NCC.
The directive mandates that 60 per cent of the debt accumulated prior to the implementation of Application Programming Interfaces (APIs) in February 2022 must be paid as full and final settlement.
A payment plan, either as a lump sum or in instalments, is to be agreed upon by January 2, 2025, with full settlement required by July 2, 2025.
For debts incurred after February 2022, banks are required to settle 85 per cent of outstanding invoices by December 31, 2024.
Moving forward, 85 per cent of future invoices must be settled within one month of issuance.
The CBN and NCC further directed that all ongoing litigation regarding the USSD debt be discontinued.
The circular explicitly warned that failure to comply with the payment terms would result in stringent sanctions.
“In view of the foregoing, the CBN and NCC hereby direct that all DMBs and MNOs adhere strictly to the outlined payment terms to ensure final resolution of this matter. Failure to comply will result in sanctions,” the joint circular stated.
The deadline follows growing pressure from telecom operators, who have repeatedly called for a clear and definitive payment framework to address the mounting debt, which has created significant tension between the banking and telecommunications sectors.
The regulators also emphasised the importance of transitioning to end-user billing (EUB) for USSD services. However, this will only apply to banks and telecoms that meet the stipulated payment obligations.
Until this transition takes place, operators have been instructed to implement a “10-seconds rule,” ensuring that sessions lasting less than 10 seconds are not billed.
Additionally, the circular allows banks using prepaid billing systems to transition to EUB, contingent upon regulatory approval.
In their joint statement, the CBN and NCC reiterated their commitment to resolving the debt impasse, stating that the new measures are aimed at stabilising both the financial and telecommunications sectors while safeguarding the continued availability of USSD services to Nigerians.
USSD remains an essential service for financial inclusion, particularly in rural areas of Nigeria, where smartphone penetration and internet access are limited.
The service is heavily relied upon by banks for mobile banking, as well as for other telecom services such as airtime top-ups and bill payments.
The USSD debt crisis has persisted for several years, with telecom operators previously threatening to suspend USSD services unless outstanding payments were made.
While smaller banks have reportedly started repaying their obligations in instalments, larger tier-one banks, which account for the majority of the debt, have yet to make significant payments.
Gbenga Adebayo, Chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON), commented in November that while some repayments have been recorded, they still fall far short of expectations.
With the deadline approaching, both sectors are under increasing pressure to resolve the debt and ensure the uninterrupted availability of USSD services for millions of Nigerians.
