The Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) have directed deposit money banks (DMBs) and mobile network operators (MNOs) to resolve the long-standing ₦250 billion debt tied to unstructured supplementary service data (USSD) services.
This directive was outlined in a document titled “2nd Joint Circular of the Central Bank of Nigeria and the Nigerian Communications Commission on the Resolution of the USSD Debt Issue Between Deposit Money Banks and Mobile Network Operators”, released on Monday.
The Debt Timeline
Back in March 2021, telecom operators threatened to suspend USSD services over a ₦42 billion debt owed by banks, which had risen from ₦32 billion in 2019.
The suspension was halted following intervention by Isa Pantami, the then Minister of Communications and Digital Economy.
By November 2022, the debt escalated to ₦80 billion, and by May 2023, it reached ₦120 billion.
As of November 16, 2023, telcos reported the amount had soared to ₦200 billion, climbing to ₦250 billion by October 2024, as confirmed by Gbolahan Awonuga, Executive Secretary of the Association of Licensed Telecommunications Operators of Nigeria (ALTON).
Settlement Plan and Deadlines
The joint circular, signed by Chizua Whyte (NCC) and Oladimeji Taiwo (CBN), prescribed clear measures to resolve the dispute.
1. Payment Terms
– DMBs and MNOs must agree on payment plans—either in full or installments—by **January 2, 2025**.
– For installment plans, payments must be completed by **July 2, 2025**.
2. Debt Categorization
– Sixty percent (60%) of all pre-API (Application Programming Interface) invoices will serve as the final settlement amount for such debts.
– For post-API debts (from February 2022 onward), eighty-five percent (85%) must be paid by **December 31, 2024**, with the same percentage applicable to future invoices, which must be cleared within a month of issuance.
3. Transition to End-User Billing (EUB)
– Subject to compliance, the NCC will enable the transition to EUB for MNOs and DMBs.
– Non-compliant entities will be excluded from this transition.
4. USSD Billing Rule
– Pending the transition to EUB, MNOs must implement a “10-seconds rule,” meaning USSD sessions under ten seconds will not be billed.
Sanctions for Non-Compliance
The regulators warned that non-compliance with these directives would attract sanctions, emphasizing their commitment to fostering stability and cooperation between the banking and telecom sectors.
Both DMBs and MNOs were urged to honor their obligations to ensure the resolution of this protracted issue, safeguarding the efficiency of USSD services for Nigerian consumers.
