In a major breakthrough that has brought relief to millions of Nigerians, telecom operators in the country have confirmed that Unstructured Supplementary Service Data (USSD) services will remain active, following substantial repayments by banks toward their outstanding debts. The move has averted a potential service disruption that could have severely impacted banking transactions for users who rely on USSD services, particularly those without internet access.
The looming threat of disconnection stemmed from an accumulated debt of approximately N160 billion, which had placed several banks at risk of being cut off from the USSD platform. However, swift action by the financial institutions ensured continued access to this essential service. This positive development follows a stern warning issued by the Nigerian Communications Commission (NCC) on January 15, 2024. The regulatory body had cautioned that unless the debts—accrued since 2019—were settled, nine banks would face suspension from USSD services by January 27, 2024.
In response to this directive, the affected banks accelerated their debt repayment efforts, successfully de-escalating the crisis before the deadline. Confirming this progress at a CEO forum held in Lagos, the Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), Gbenga Adebayo, stated:
"The matter has been de-escalated. Money has been paid, and we are making progress thanks to the regulators."
The nine banks initially at risk of disconnection included 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 over USSD charges dates back to 2019 when banks began accumulating costs for using the service provided by telecom companies. However, due to financial constraints and other operational factors, several banks struggled to settle their dues, leading to the mounting debt.
To address the longstanding issue, the NCC and the Central Bank of Nigeria (CBN) devised a structured payment plan, as outlined in a memo dated December 20, 2024. The framework details a three-phase obligation schedule for banks to clear a total debt of N250 billion.
Under this arrangement, the first phase mandates banks to pay 60 percent of all outstanding pre-Application Programming Interface (API) invoices by January 2, 2025. The second phase requires the full settlement of pre-API invoices by July 2, 2025. Finally, the third phase stipulates that banks must pay 85 percent of post-API invoices by December 31, 2025.
This phased repayment strategy ensures a structured and manageable approach to settling the debt while maintaining uninterrupted financial services for millions of Nigerians who rely on USSD for transactions. The collaboration between banks, telecom operators, and regulatory bodies underscores a commitment to ensuring seamless digital banking operations, especially for the underbanked population that depends on USSD services.
The resolution of this dispute signals a renewed focus on strengthening the financial and telecommunications sectors, fostering economic stability, and improving access to banking services across the nation. As the payment plan progresses, industry stakeholders and customers alike will be keenly observing the adherence to the outlined timelines, ensuring that such crises are averted in the future.
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