The Nigerian Communications Commission (NCC) is preparing to take decisive action to resolve the longstanding dispute between telecommunications operators and banks over unpaid unstructured supplementary service data (USSD) fees, sources have revealed.
The commission may suspend USSD services entirely and publicly list banks still owing telcos. If enforced, this measure would render the USSD channel unavailable for banking transactions, disrupting a critical platform used for mobile financial services across Nigeria.
Since 2019, USSD debts have surged by 681.2%, with the telco-bank standoff reaching a boiling point. Telecom operators reported a debt of ₦32 billion in 2019, which climbed to ₦250 billion by October 2024. Despite multiple resolutions, including a 2021 agreement to charge customers ₦6.98 per USSD session, banks’ outstanding payments have continued to rise.
The Central Bank of Nigeria (CBN) and the NCC, in a December 2024 directive, urged financial institutions to clear 85% of their debts by the year’s end. However, as of December 31, 18 banks reportedly remained in default, with only four settling their accounts.
According to insiders, the NCC is frustrated with banks’ lack of urgency and plans to publish a public notice identifying defaulting institutions. The announcement is expected to advise consumers to explore alternative transaction methods, giving banks a two-week ultimatum to pay their debts or face USSD disconnection.
If the suspension takes effect, millions of Nigerians who rely on USSD services for financial transactions could be affected. This potential disruption highlights the growing tension between telcos seeking a tariff hike and banks reluctant to meet their financial obligations.
The move underscores the federal government’s commitment to addressing industry challenges while balancing the interests of telecom operators, financial institutions, and consumers.
Observers await the NCC’s next steps as the commission aims to resolve this critical impasse, which could reshape the dynamics of mobile banking and digital financial services in Nigeria.
