The Central Bank of Nigeria (CBN) and the telecom industry regulator, the Nigerian Communications Commission (NCC), have issued a final directive to Deposit Money Banks (DMBs) and Mobile Network Operators (MNOs) to resolve their long-standing ₦250 billion Unstructured Supplementary Service Data (USSD) debt dispute.
The directive, reported by the Punch, is contained in a joint circular dated December 20, 2024.
The circular was signed by Oladimeji Taiwo, Acting Director of Payments System Management at the CBN, and Chizua Whyte, Head of Legal and Regulatory Services at the NCC.
The document sets forth a structured repayment plan for the debt and establishes new operational guidelines for USSD services.
Key Provisions of the Directive
Pre-February 2022 Debts
DMBs must pay 60% of all debts accrued before the introduction of Application Programming Interfaces (APIs) in February 2022.
This payment will be considered a full and final settlement.
Payment agreements (lump sum or instalment) must be concluded by January 2, 2025, with full payment due by July 2, 2025.
Post-February 2022 Debts
Banks are required to settle 85% of all outstanding invoices by December 31, 2024.
For future invoices, 85% must be paid within one month of issuance.
Litigation and Compliance
All ongoing legal disputes related to USSD debt must be discontinued.
Non-compliance with the payment terms will attract severe sanctions from the regulators.
“In light of the above, the CBN and NCC direct all DMBs and MNOs to comply strictly with the payment terms to achieve a final resolution of this matter. Failure to comply will result in sanctions,” the circular stated.
The directive also mandates a transition to end-user billing (EUB) for USSD services, applicable only to banks and telcos that fulfill the outlined payment obligations. Pending this transition, operators must adhere to a “10-second rule,” where sessions lasting less than 10 seconds will not incur charges.
Banks using prepaid billing systems may migrate to EUB with regulatory approval.
The directive comes amid rising pressure from telecom operators, who have called for a clear payment framework to address the debt, which has strained relationships between the banking and telecommunications sectors.
USSD services are crucial for financial inclusion in Nigeria, particularly in rural areas with limited smartphone penetration and internet access. Banks rely on USSD for mobile banking, airtime top-ups, bill payments, and other services.
