USSD debts: NCC orders telcos to disconnect nine banks - Freedom Online
The Nigerian Communications Commission, NCC, has directed telecommunications companies to disconnect the Unstructured Supplementary Service Data, USSD, codes assigned to nine financial institutions due to unsettled debts.
The Nigerian Communications Commission, NCC, has directed telecommunications companies to disconnect the Unstructured Supplementary Service Data, USSD, codes assigned to nine financial institutions due to unsettled debts.
This was contained in a public notice signed by NCC’s Director of Public Affairs, Reuben Muoka, on Wednesday.
The NCC noted that the banks’ failure to comply with the CBN-NCC joint circular also meant that they are unable to meet the good standing requirements for the renewal of the USSD codes assigned to them by the commission.
This was even as data from the CBN showed that 252.06 million transactions worth N2.19 trillion were conducted via USSD between January and June 2024.
However, the NCC stated that, some of the unsettled invoices have remained unpaid since 2020, indicating a prolonged financial dispute between the banks and telecom operators.
Muoka noted that the affected banks must settle their outstanding debts by January 27, 2025 or risk losing access to their USSD codes, pointing out that the codes, which were essential for enabling mobile banking services, could be reassigned to other applicants if the debts remained unpaid.
He further said that the nine affected financial institutions had not complied with the NCC directives as at Tuesday.
Muoka noted that the affected banks must settle their outstanding debts by January 27, 2025 or risk losing access to their USSD codes, pointing out that the codes, which were essential for enabling mobile banking services, could be reassigned to other applicants if the debts remained unpaid.
He further said that the nine affected financial institutions had not complied with the NCC directives as at Tuesday.
His words, "While other banks have cleared their debts, the total amount initially owed by the financial institutions were reported to exceed N200 billion.
“By the information made available to the commission as at close of business on January 14, 2025, out of a total of 18 financial institutions, nine institutions failed to comply significantly with the directives in the Second Joint Circular of the Central Bank of Nigeria and the commission.
“The circular is dated December 20, 2024, and is for the settlement of outstanding invoices due to Mobile Network Operators, MNOs, some since 2020.
“In fulfilment of its consumer protection mandate, the commission wishes to inform consumers that they may be unable to access the USSD platform of the affected financial institutions from January 27, 2025."
The NCC stressed that the financial institutions had been duly notified of the need for immediate compliance and warned that consumers may face service disruptions, if the issues remained unresolved.
In 2023, 630.6 million transactions valued at N4.84 trillion were completed using USSD codes.
“By the information made available to the commission as at close of business on January 14, 2025, out of a total of 18 financial institutions, nine institutions failed to comply significantly with the directives in the Second Joint Circular of the Central Bank of Nigeria and the commission.
“The circular is dated December 20, 2024, and is for the settlement of outstanding invoices due to Mobile Network Operators, MNOs, some since 2020.
“In fulfilment of its consumer protection mandate, the commission wishes to inform consumers that they may be unable to access the USSD platform of the affected financial institutions from January 27, 2025."
The NCC stressed that the financial institutions had been duly notified of the need for immediate compliance and warned that consumers may face service disruptions, if the issues remained unresolved.
In 2023, 630.6 million transactions valued at N4.84 trillion were completed using USSD codes.
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