Sources familiar with the matter suggest potential actions include a temporary suspension of USSD services and the publication of a list of banks with outstanding payments to telecommunications providers.
Should this occur, USSD banking services will be unavailable. The precise timing of the suspension announcement is uncertain, but the list of non-compliant banks is expected to be released by the end of the week.
This development appears to be part of the federal government’s broader strategy to tackle challenges within the industry, coinciding with telecommunications companies' calls for an increase in tariffs.
USSD DEBT HAS INCREASED BY 681.2% SINCE 2019
Media analysis reveals that the USSD debt has surged by 681.2 percent since 2019, prompting numerous threats from telecom operators to withdraw services.
On March 12, 2021, telecom companies warned of a potential suspension of USSD services due to a debt of N42 billion owed by banks, which had previously stood at N32 billion in 2019. This action was ultimately averted by Isa Pantami, the former minister of communications and digital economy.
A resolution was reached on March 16, 2021, allowing for an adjustment in customer charges to N6.98k per USSD transaction.
The Association of Licensed Telecommunications Operators of Nigeria (ALTON) reported that the USSD debt reached N80 billion by November 2022.
As of November 16, 2023, telcos indicated that the debt had escalated to N200 billion, up from N120 billion in May of the same year.
On October 22, 2024, Gbolahan Awonuga, the executive secretary of ALTON, stated that the debt had further increased to N250 billion.
It is understood that the NCC, the Central Bank of Nigeria (CBN), and other relevant parties have been in discussions to find a sustainable resolution to this issue, but progress has been minimal.
The Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) issued a directive on December 24, 2024, instructing mobile network operators (MNOs) and deposit money banks (DMBs) to resolve the ongoing debt dispute. They mandated that financial institutions settle 85 percent of all outstanding invoices by December 31, 2024.
'18 BANKS REMAIN INDEBTED AS OF DECEMBER 31'
However, a source informed TheCable that approximately 18 banks have not yet fulfilled their payment obligations, while four banks had settled their debts by December 31.
Another source indicated that the commission perceives the banks' approach to this matter as dismissive, prompting them to inform the public about the potential suspension of USSD services.
The agency plans to reveal the names of banks that still have unpaid debts, and they’ll be putting out a public notice for customers. This notice will say something like, "These banks haven't paid up yet."
The idea behind this notice is to give consumers a two-week heads-up to find other ways to handle their transactions. At the same time, it gives the banks a two-week chance to clear their debts before they risk being cut off.