The Nigerian Communications Commission (NCC) has issued a directive to telecommunications companies to disconnect the Unstructured Supplementary Service Data (USSD) codes of nine financial institutions due to unpaid debts. This action, which could severely disrupt mobile banking services, must be enforced by January 27, 2025, unless the banks settle their outstanding obligations, the NCC stated.
The affected banks 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. These institutions owe significant amounts to telecommunications operators, with some debts dating back to 2020.
In a notice signed by its director of Public Affairs, Reuben Muoka, the NCC explained that the banks’ failure to comply with a joint directive from the Central Bank of Nigeria (CBN) and the NCC has led to the ultimatum. The notice further warned that consumers may experience disruptions in accessing USSD services, which are crucial for mobile banking, if the debts remain unresolved.
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USSD codes, such as 770, 919, and 822, are essential for providing banking services to customers without internet access. The NCC stated that if the debts are not cleared, the codes could be reassigned to other applicants.
The notice added, “By the information made available to the commission as at close of business on Tuesday, 14th January 2025, of a total of 18 financial institutions, the nine institutions listed below have failed to comply significantly with the directives in the Second Joint Circular of the Central Bank of Nigeria and the commission dated December 20, 2024, for the settlement of outstanding invoices due to MNOS, some since 2020.”
The NCC further highlighted that the banks’ failure to comply with the CBN-NCC joint circular means they did not meet the good standing requirements needed for the renewal of their USSD codes. The commission emphasized, “In fulfilment 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.”
This development highlights the ongoing tensions between telecom operators and financial institutions over the long-standing issue of unpaid USSD-related debts, which have persisted for years.
