The Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) have instructed Deposit Money Banks (DMBs) and Mobile Network Operators (MNOs) to resolve the ongoing N250 billion USSD debt dispute.
This directive, known as the “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,” was exclusively acquired by our correspondent on Monday.
This initiative aligns with a report from The PUNCH, which indicated that telecom operators have requested a structured payment plan from regulators to tackle the escalating debt that has raised significant concerns in both industries.
Dated December 20, 2024, the circular was signed by Oladimeji Taiwo, the Acting Director of the Payments System Management Department at the CBN, and Chizua Whyte, the Head of Legal and Regulatory Services at the NCC. It details specific measures for settling the debt.
The regulators expressed serious concern regarding the prolonged dispute between DMBs and MNOs over the utilization of MNOs’ USSD platforms for banking services, which remains unresolved despite numerous attempts to address it.
In light of this, the CBN and NCC have mandated that 60 percent of all pre-API invoices be paid as a complete and final settlement. DMBs and MNOs must establish payment plans, either as a lump sum or in installments, by January 2, 2025. If opting for installments, these must be finalized by July 2, 2025.
For post-API debts, which arise from transactions following the introduction of Application Programming Interfaces in February 2022, the CBN and NCC require DMBs to settle 85 percent of all outstanding invoices by December 31, 2024. Furthermore, 85 percent of all future invoices must be paid within one month of their issuance.
The CBN and NCC have also ordered the immediate cessation of all legal actions related to the USSD debt issue, warning that non-compliance with these directives will lead to sanctions from the appropriate regulatory authorities.
The circular said, “In view of the foregoing, the CBN and the NCC hereby direct DMBs and MNOs as follows: 1. That 60 per cent of all pre-API invoices must be paid as full and final settlement. Payment plans (lump sum or installments) must be agreed upon between a concerned DMB and MNO by January 2, 2025. Installments must be based on equal monthly payments, with full payment due by July 2, 2025.
“DMBs must pay 85 per cent of all outstanding invoices issued after the implementation of APIs (i.e., February 2022) by December 31, 2024. Similarly, 85 per cent of future invoices must be liquidated within one month of service.”
The CBN and NCC reiterated that the implementation of end-user billing will only be initiated for DMBs and MNOs that adhere to the specified payment conditions.
Both organizations will offer additional guidance on public awareness campaigns concerning this transition. Until the transition is finalized, MNOs are required to apply the “10-seconds rule” for USSD invoicing, which stipulates that any session under ten seconds will not incur charges.
The circular permits DMBs with prepaid billing systems to transition to EUB, contingent upon fulfilling the necessary regulatory requirements.
The CBN and NCC emphasized that failure to comply with these directives will lead to penalties, highlighting the regulators’ dedication to resolving the ongoing dispute and maintaining stability in both sectors.
The circular added, “Failure to comply with the terms outlined in this directive will attract necessary sanctions, ensuring that both DMBs and MNOs uphold their obligations.”