The Nigerian Communications Commission (NCC) has directed nine banks, including Fidelity Bank Plc and United Bank for Africa Plc, to settle outstanding debts by January 27, 2025, or face the disconnection of their Unstructured Supplementary Service Data (USSD) codes.
In a public notice signed by its Director of Public Affairs, Reuben Muoka, the NCC stated that these financial institutions had failed to comply with a directive outlined in the Second Joint Circular issued by the Central Bank of Nigeria (CBN) and the NCC on December 20, 2024. The circular pertains to the settlement of outstanding invoices, some of which date back to 2020.
The NCC explained, “As of the close of business on January 14, 2025, nine of the 18 financial institutions have significantly failed to settle their obligations in line with the directives.”
USSD codes, critical for mobile banking services that facilitate offline financial transactions, could be reassigned to new applicants if the debts remain unpaid. The commission also warned consumers that they might lose access to the USSD services of these banks starting January 27, 2025.
The total outstanding debt initially exceeded N200 billion, though the current figure remains undisclosed. The NCC further noted that some banks had successfully cleared their debts, resolving disputes with telecom operators.
USSD services, originally designed for telecom operations, have become essential for Nigeria’s banking sector. Between January and June 2024 alone, 252.06 million USSD transactions worth N2.19 trillion were conducted, highlighting their importance in financial inclusion.
The looming suspension of USSD codes could disrupt banking services for millions of Nigerians, as unresolved financial disputes between banks and telecom operators persist.
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