The Nigerian Communications Commission (NCC) and telecommunications companies have firmly ruled out extending the deadline for banks to settle their Unstructured Supplementary Service Data (USSD) debts, leaving defaulting banks scrambling to clear their arrears by the close of business on Monday.
Initially, nine banks were in arrears, but by Friday, the number had decreased to seven, according to telecommunications sources. As of Monday, two banks had made payments, with one more indicating their intention to settle, leaving six banks still in arrears.
This development follows a directive from the telecom regulator on January 15, 2025, which gave the nine banks a final deadline of January 27, 2025, to settle their outstanding USSD debts or face disconnection of their services vital for millions of Nigerians who rely on mobile banking for transactions without internet access.
Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), confirmed tojournalists that the number of defaulting banks had dropped to seven as of Friday, but only two banks had made payments by that time.
“One of these seven has reached out to confirm that they will settle their debt today (Monday), which will leave about five or six banks still outstanding,” Adebayo explained.
This enforcement is part of a structured payment plan outlined in a December 20 memo from the NCC and the Central Bank of Nigeria (CBN). The memo sets clear deadlines for banks to settle the total N250 billion USSD debt in three phases.
The first phase required banks to settle 60 percent of all outstanding pre-API invoices by January 2, 2025. Adebayo emphasized the importance of this phase, noting that failure to meet the deadline could lead to the disconnection of USSD services, a vital tool for millions of Nigerians.
“This is just the first phase of the directive. We hope that banks who have complied with this phase will continue to meet their obligations in subsequent ones,” Adebayo said.
The second phase requires banks to complete full payment of all pre-API invoices by July 2, 2025. The third phase mandates the settlement of 85 percent of post-API invoices by December 31, 2025.
Adebayo emphasized that full compliance would be expected in the second and third phases. “Non-compliance at any stage will have consequences, and we hope to avoid any disruption of services,” he noted.
When asked about the possibility of an extension to the deadline, Adebayo categorically ruled it out, stating that such a decision would require joint approval from both the NCC and CBN.
“There will be no extension. If there is to be one, it would require joint approval from the NCC and CBN, but I doubt either regulator would act without consulting the other,” Adebayo explained.
The ATCON chairman urged banks to meet their obligations to prevent disruptions to mobile banking services, which millions of Nigerians depend on for daily transactions.
“It’s crucial for non-compliant banks to settle their debts to ensure we don’t disrupt the economy and the digital services subscribers rely on,” Adebayo added.
Reuben Mouka, Director of Public Affairs at the NCC, reiterated the January 27 deadline, affirming that disconnection would occur if banks failed to meet the payment requirements. “We have clearly stated in our publications that disconnection will occur if banks fail to meet the payment deadline,” Mouka said. “It is now up to the telecom operators to decide whether or not to disconnect the services.”
