Nigeria’s telecom operators have kept Unstructured Supplementary Service Data services active as banks make significant progress in repaying their outstanding debts, preventing a potential disruption that could have impacted millions of users.
The banks, which were at risk of disconnection due to a N160bn debt, have made substantial progress in clearing their liabilities, ensuring continued access to the USSD platform—vital for customers without internet access.
In a January 15, 2024, notice, the Nigerian Communications Commission 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.
Chairman of the Association of Licensed Telecommunications Operators of Nigeria, Gbenga Adebayo, confirmed at a CEO forum in Lagos that the matter had been de-escalated.
“The matter has been de-escalated. Money has been paid, and we are making progress thanks to the regulators,” he said.
The nine banks that would have been affected by the NCC’s disconnection notice include Fidelity Bank Plc, First City Monument Bank, Jaiz Bank Plc, Polaris Bank Limited, Sterling Bank Limited, United Bank for Africa Plc, Unity Bank Plc, Wema Bank Plc, and Zenith Bank Plc.
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.
