By Abubakar Yunusa
The Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) have issued a directive for Deposit Money Banks (DMBs) and Mobile Network Operators (MNOs) to resolve the N250 billion Unstructured Supplementary Service Data (USSD) debt dispute that has strained their relationship.
In a joint circular dated December 20, 2024, and titled ‘2nd Joint Circular of the Central Bank of Nigeria and the Nigerian Communications Commission on the Resolution of the USSD Debt Issue Between Deposit Money Banks and Mobile Network Operators’, the regulators outlined measures to settle the long-standing debt impasse.
The circular, signed by CBN’s Acting Director of Payments System Management, Oladimeji Taiwo, and NCC’s Head of Legal and Regulatory Services, Chizua Whyte, mandates that banks pay 60% of all pre-API outstanding invoices as full settlement by July 2, 2025.
For post-API invoices, 85% of the debt must be cleared by December 31, 2024. Future post-API invoices must be paid within a month of issuance.
The regulators also directed both parties to halt all legal actions related to the debt. Non-compliance with these directives will attract sanctions from both the CBN and NCC.
The circular introduced the transition to Enhanced USSD Billing (EUB) for compliant institutions. While the transition is underway, telecom operators are required to adopt a “10-second rule” for billing, which exempts sessions under 10 seconds from charges. Banks on prepaid billing systems may switch to EUB after fulfilling regulatory requirements.
The regulators emphasized public enlightenment initiatives to educate users on EUB, aiming to improve transparency and customer experience.
“Failure to comply with the terms outlined in this directive will attract necessary sanctions, ensuring that both DMBs and MNOs uphold their obligations,” the circular stated.
This directive follows heightened tensions between the financial services and telecommunications sectors over unpaid USSD debts, with both sides expressing concerns over revenue losses and service disruptions.
The CBN and NCC reaffirmed their commitment to resolving the issue and maintaining stability in both sectors.
The resolution, they noted, is critical for sustaining the trust and efficiency of financial and telecommunications services in Nigeria.
