The Nigerian Communications Commission (NCC) has issued a directive to telecommunications companies to disconnect the Unstructured Supplementary Service Data (USSD) codes of nine financial institutions. This action comes in response to the banks’ failure to settle a staggering debt of N200 billion that has been accumulating since 2019.
The NCC has set a deadline of January 27, 2025, for the disconnection to take effect, should the banks not resolve their outstanding obligations. The financial institutions affected by this directive include Fidelity Bank Plc, First City Monument Bank, Jaiz Bank Plc, Polaris Bank Limited, Sterling Bank Limited, United Bank for Africa Plc, Unity Bank Plc, Wema Bank Plc, and Zenith Bank Plc.
These banks owe substantial amounts to telecommunications operators, with some debts remaining unpaid since 2020. The NCC’s notice, signed by its Director of Public Affairs, Reuben Muoka, highlights the urgency of the situation, emphasizing that the banks’ non-compliance with a joint directive from the Central Bank of Nigeria (CBN) and the NCC has necessitated this ultimatum.
The notice warns consumers that they may experience disruptions in accessing USSD services, which are essential for mobile banking, if the debts are not resolved. USSD codes, such as 770, 919, and 822, play a crucial role in providing banking services to customers without internet access. The NCC has indicated that unresolved debts could lead to the reassignment of these codes to other applicants.
In the statement, NCC stated, “As of close of business on Tuesday, 14th January 2025, of a total of 18 financial institutions, the nine institutions listed below have failed to comply significantly with the directives in the Second Joint Circular of the Central Bank of Nigeria and the commission dated December 20, 2024, for the settlement of outstanding invoices due to Mobile Network Operators (MNOs), some since 2020.”
The regulator further noted that the banks’ failure to comply with the CBN-NCC joint circular indicates their inability to meet the good standing requirements necessary for the renewal of the USSD codes assigned to them. The NCC reiterated its commitment to consumer protection, informing the public that they may be unable to access the USSD platforms of the affected financial institutions starting January 27, 2025.
This development highlights the ongoing tensions between telecommunications operators and financial institutions over unpaid USSD-related debts, a challenge that has persisted for several years and continues to impact consumers and the banking sector alike.
