The Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) have issued a decisive directive to Deposit Money Banks (DMBs) and Mobile Network Operators (MNOs) to resolve the longstanding N250 billion Unstructured Supplementary Service Data (USSD) debt dispute. The directive is aimed at addressing a financial impasse that has strained relations between the banking and telecommunications sectors.
The joint circular, dated December 20, 2024, 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. It outlined a structured payment plan and introduced operational guidelines to ensure the timely resolution of the debt.
Payment Terms and Deadlines
According to the directive, 60% of all debts incurred before February 2022—prior to the implementation of Application Programming Interfaces (APIs)—must be paid as a full and final settlement. Payment agreements, whether as lump sums or in installments, must be finalized by January 2, 2025, with the full settlement required by July 2, 2025.
For debts accumulated after February 2022, banks are mandated to pay 85% of all outstanding invoices by December 31, 2024. Moving forward, banks must settle 85% of future invoices within one month of issuance. This structured plan aims to reduce the backlog of debts while establishing a sustainable framework for ongoing payments.
Operational Guidelines and Sanctions
The regulators also addressed ongoing litigation related to the USSD debt, directing all parties to discontinue legal actions. Failure to comply with the payment terms or the directive will attract strict sanctions, as stated in the circular: “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.”
To ensure fairness in billing practices, the CBN and NCC introduced a “10-seconds rule,” requiring operators to refrain from billing for USSD sessions shorter than 10 seconds. Additionally, the regulators emphasized a transition to end-user billing (EUB) for USSD services. Banks and telecom operators that meet their payment obligations will be eligible to migrate to the EUB model, with pending transitions subject to regulatory approval.
The Impact of the Debt Crisis
The USSD debt crisis has been a longstanding issue in Nigeria’s financial and telecommunications sectors. USSD services are essential for financial inclusion, particularly in rural areas where smartphone usage and internet access are limited. Banks rely heavily on USSD for mobile banking services, enabling transactions such as airtime top-ups, bill payments, and fund transfers.
Telecom operators have repeatedly called for a resolution, threatening to suspend USSD services if payments are not made. Smaller banks have reportedly begun repaying their obligations in installments. However, tier-one banks, which owe the majority of the debt, have made little progress in clearing their dues, according to the Chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON), Gbenga Adebayo.
Regulatory Commitment to Stability
The CBN and NCC underscored their commitment to fostering stability in both the financial and telecommunications sectors. By resolving the USSD debt crisis, the regulators aim to ensure the continued availability of USSD services for Nigerians, particularly in underserved regions.
The directive also seeks to strengthen collaboration between banks and telecom operators, creating a more sustainable framework for the future. As the regulatory bodies work to enforce compliance, this initiative is expected to address lingering financial disputes while enhancing financial inclusion and service delivery across the country.
Future Outlook
The resolution of the USSD debt crisis marks a significant step toward stabilizing Nigeria’s financial and telecom ecosystems. With clear payment frameworks and operational guidelines now in place, stakeholders are optimistic that the measures will lead to improved cooperation and efficiency in delivering USSD services.
The directive reflects the regulators’ broader commitment to addressing systemic challenges, ensuring that critical infrastructure like USSD remains accessible to all Nigerians while fostering trust and accountability between the banking and telecommunications sectors.
