The Nigerian Communications Commission (NCC) has directed telecommunications companies to disconnect the Unstructured Supplementary Service Data (USSD) codes of nine financial institutions over unpaid debts. This decision, outlined in a public notice signed by the NCC’s Director of Public Affairs, Reuben Muoka, was issued on Tuesday.
The telecom regulator has given the affected banks until January 27, 2025, to settle their outstanding obligations or face disconnection from the USSD platform. These codes are critical for mobile banking services and may be reassigned to other applicants if the debts remain unresolved.
Outstanding Debts and Compliance Issues
As of January 14, 2025, the NCC disclosed that nine out of 18 financial institutions have not complied with regulatory directives related to the settlement of outstanding invoices owed to Mobile Network Operators (MNOs). While some banks have cleared their debts, the total amount initially owed exceeded N200 billion. However, the precise amount currently owed by the non-compliant banks has not been disclosed.
The notice revealed that some of these debts have been outstanding since 2020, reflecting a long-standing financial dispute between the banks and telecom operators. The NCC highlighted that the banks’ failure to meet the directives of a joint circular issued by the Central Bank of Nigeria (CBN) and the NCC on December 20, 2024, compromises their ability to renew the USSD codes assigned to them.
Impact on Consumers and Banking Services
The NCC warned that consumers might face disruptions in accessing USSD banking services provided by the affected financial institutions if the issues are not resolved by the stipulated deadline. “In fulfillment of its consumer protection mandate, the commission wishes to inform consumers that they may be unable to access the USSD platform of the affected financial institutions from January 27, 2025,” the notice read.
The affected USSD codes include 770, 919, and 822, among others, which are widely used for transactions such as money transfers, balance inquiries, and bill payments. The potential disruption could significantly affect customers who rely on these services for daily banking activities.
Affected Financial Institutions
The nine financial institutions facing disconnection 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
- Zenith Bank Plc
Regulatory Warnings and Next Steps
The NCC emphasized that the affected banks have been duly notified of the need for immediate compliance with the CBN-NCC joint circular. Failure to comply could lead to reassignment of their USSD codes to other applicants, further complicating their ability to provide mobile banking services.
This development underscores the importance of financial institutions adhering to regulatory obligations, particularly when it involves services that directly impact consumers. The NCC’s decision highlights its commitment to protecting consumers and ensuring the sustainability of telecom and financial services partnerships.
The situation remains critical as the January 27, 2025, deadline approaches, with potential consequences for millions of banking customers across Nigeria.
