The Federal Government, through the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC), has issued a final directive to Deposit Money Banks (DMBs) and Mobile Network Operators (MNOs) to resolve the long-standing ₦250 billion Unstructured Supplementary Service Data (USSD) debt within six months.
In a joint circular dated December 20, 2024, the CBN and NCC outlined a structured repayment plan for the debt and introduced new operational guidelines for USSD services.
Key Provisions of the Directive
Pre-February 2022 Debts
- 60% Payment Requirement: DMBs must pay 60% of all debts accrued before the introduction of Application Programming Interfaces (APIs) in February 2022.
- Full Settlement: This payment will be considered as a complete and final settlement of pre-2022 debts.
- Payment Timeline: Banks must finalize agreements by January 2, 2025, and complete payment by July 2, 2025.
Post-February 2022 Debts
- 85% Settlement: Banks are required to settle 85% of all outstanding invoices by December 31, 2024.
- Future Payments: Going forward, 85% of invoices must be paid within one month of issuance.
Litigation and Sanctions
- Discontinuation of Legal Disputes: All ongoing legal disputes over USSD debt must be dropped.
- Sanctions: Non-compliance with these directives will attract severe regulatory penalties.
Transition to End-User Billing (EUB)
The directive mandates a shift to end-user billing for USSD services, applicable only to banks and telcos that meet the repayment requirements. Pending this transition, operators must adhere to a “10-second rule,” ensuring that sessions under 10 seconds are not charged.
Banks utilizing prepaid billing systems may migrate to EUB with regulatory approval.
The USSD debt crisis has persisted for years, straining relations between the banking and telecommunications sectors. USSD services play a vital role in financial inclusion, particularly in rural areas where smartphones and internet access are limited.
Telecom operators, frustrated by delayed payments, have threatened to suspend USSD services. While smaller banks have begun making installment payments, major lenders responsible for the bulk of the debt have shown limited progress, according to Gbenga Adebayo, Chairman of the Association of Licensed Telecom Operators of Nigeria.
“Some repayments have been recorded, but they remain far below expectations,” Adebayo said.
The CBN and NCC emphasized that the measures aim to stabilize both sectors and ensure uninterrupted USSD services for Nigerians. Failure to comply with the directive, they warned, would result in stiff sanctions.
This directive is seen as a critical step toward resolving the debt impasse, fostering collaboration between banks and telcos, and safeguarding financial inclusion efforts across the country.
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