The disconnection threats hanging over some Nigerian banks for Unstructured Supplementary Service Data (USSD) debt totalling N160 billion have been lifted as they (banks) make significant progress in repaying their outstanding debts to telecom operators.
The banks, by their timely action, avoided service disconnection threats by the Nigerian Communications Commission (NCC) which could have resulted in a potential disruption and ultimately impact millions of users negatively.
The banks, which faced disconnection risk over the N160 billion debt have cleared their liabilities significantly, ensuring continued access to the USSD platform, which is vital for customers without internet access.
The nine banks that would have been affected by the NCC’s disconnection notice include; United Bank for Africa Plc, Fidelity Bank Plc, Sterling Bank Limited, First City Monument Bank, Jaiz Bank Plc, Polaris Bank Limited, Unity Bank Plc, Wema Bank Plc, and Zenith Bank Plc.
NCC, had in a January 15, 2024, notice, warned that nine banks would be cut off from USSD services by January 27 if they failed to clear debts accumulated since 2019. However, the banks acted quickly to resolve the issue, averting service disruptions.
Confirming the development at a CEO forum in Lagos on Monday, Chairman of the Association of Licenced Telecommunications Operators of Nigeria (ALTON), Gbenga Adebayo said the matter had been de-escalated.
He said, “The matter has been de-escalated. Money has been paid, and we are making progress thanks to the regulators.”
The dispute began in 2019 when banks started incurring charges for using USSD services provided by telecom companies. However, many banks struggled to settle the charges, causing the debt to accumulate.
This enforcement is part of the first phase of a structured payment plan outlined in a December 20, 2024 memo from the NCC and the Central Bank of Nigeria.
The memo details a three-phase payment obligation for banks to settle the N250bn debt, with specific deadlines for each phase.
The first phase requires banks to settle 60 per cent of all outstanding pre-API invoices by January 2, 2025.
The second phase mandates the full payment of all pre-API invoices by July 2, 2025. Finally, the third phase requires banks to settle 85 per cent of post-API invoices by December 31, 2025.
