Nigerian banks have made significant strides in settling their Unstructured Supplementary Service Data (USSD) debt, successfully avoiding a potential service disconnection that could have affected millions of customers.
The financial institutions had been at risk of losing USSD services due to an outstanding ₦160 billion debt. However, they have now made substantial payments, ensuring that customers—particularly those without internet access—can continue using the vital banking platform.
On January 15, 2024, the Nigerian Communications Commission (NCC) issued a notice warning that nine banks would be disconnected by January 27 if they failed to clear debts accumulated since 2019. Responding swiftly, the banks took action to prevent service disruption.
Speaking at a CEO forum in Lagos, Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), confirmed that the crisis had been resolved.
"The matter has been de-escalated. Payments have been made, and progress is being achieved with the help of regulators," he said.
The nine affected banks included Fidelity Bank, FCMB, Jaiz Bank, Polaris Bank, Sterling Bank, UBA, Unity Bank, Wema Bank, and Zenith Bank.
The dispute traces back to 2019, when banks began accumulating charges for using USSD services provided by telecom operators. Many struggled to pay, leading to a ballooning debt.
To resolve the issue, the NCC and the Central Bank of Nigeria (CBN) outlined a structured three-phase repayment plan in a December 20, 2024 memo, requiring banks to clear a total of ₦250 billion in outstanding payments.
- Phase 1: Banks must pay 60% of all pre-API invoices by January 2, 2025.
- Phase 2: Full settlement of pre-API invoices is due by July 2, 2025.
- Phase 3: 85% of post-API invoices must be paid by December 31, 2025.