CBN, NCC ask banks, telcos to decide N250 billion USSD debt payment plan by January

• The Central Bank of Nigeria and the Nigerian Communications Commission have asked banks and telcos to decide N250 billion USSD debt payment plan by January 2, 2025
• The regulators say banks and telcos can either choose a lump sum or installment payment options
• ATCON earlier called on industry regulators to implement clear and practical solutions to the debt dispute

The Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) have directed Deposit Money Banks (DMBs) and Mobile Network Operators to agree on a payment plan for the N250 billion Unstructured Supplementary Service Data (USSD) debt by January 2, 2025.

The directive was contained in a circular titled, ‘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,’ which was released on Monday, December 23.

The circular, dated December 20, 2024, was signed by the Ag Director of the Payments System Management Department at the CBN, Oladimeji Taiwo, and the Head of Legal and Regulatory Services at the NCC, Chizua Whyte.

It outlined specific measures for debt settlement, saying that DMBs and MNOs are required to agree on payment plans of either a lump sum or an installment by January 2, 2025. It said if the installment payment option is chosen, it must be based on equal monthly payment, which must be completed by July 2, 2025.

The regulators expressed concern that the debacle over payment for using MNOs’ USSD platforms for banking services has remained protracted.

The regulators directed that 60 per cent of all pre-Application Programming Interfaces (APIs) invoices must be paid as full and final settlement.

The CBN and NCC also directed that for post-API debts, which stem from transactions after the introduction of APIs in February 2022, DMBs must pay 85 per cent of all outstanding invoices by December 31, 2024.

It added that 85 per cent of all future invoices must be cleared within one month of issuance.

The CBN and NCC also directed the immediate discontinuation of all litigation related to the USSD debt issue, adding that failure to comply with the directives would result in sanctions by the relevant regulatory bodies.

The circular read, “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.”

Further directives on USSD debt 

The regulators also stressed that the transition to end-user billing (EUB) will be activated only for DMBs and MNOs that comply with the payment terms.

The CBN and NCC said they will provide further guidance on public enlightenment initiatives related to the transition.

The circular added that pending the finalisation of the transition, MNOs are instructed to implement the “10-seconds rule” for USSD invoicing. This means that any session that lasted for less than 10 seconds will not be billable.

It further said DMBs with prepaid billing options can migrate to EUB, subject to the completion of the required regulatory processes.

The agencies stressed the importance of complying with the directive, warning that non-compliance would attract sanctions.

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.”

ATCON demanded plan to resolve debt dispute

The Association of Telecommunications Companies of Nigeria (ATCON) earlier called on industry regulators to implement clear and practical solutions to resolve the long-standing N250 billion USSD debt.

ATCON President, Tony Emoekpere, in an interview with The Punch, emphasised the need for clear, timely and equitable resolution of the dispute, warning that the debt crisis threatens the progress of financial inclusion in the country.

Emoekpere said, “My advice is that it is crucial for this debt to be addressed directly and for a solution to be found. If telcos are not encouraged to support the financial industry and such debts continue to accumulate, it will be detrimental to financial inclusion targets.”

Telecom operators argue that the unpaid debts undermine their ability to maintain USSD services, which are critical for financial transactions and deepening financial inclusion in Nigeria.

N250bn debt: Telcos seek NCC approval to stop bank transfer services

Meanwhile, TheRadar reported that Nigeria’s telecom operators are pushing for regulatory approval from the Nigerian Communications Commission to withdraw USSD services from banks due to an outstanding debt of over N250bn.

This debt has been a contentious issue for the past six years, prompting past interventions from the Central Bank of Nigeria under Godwin Emefiele’s leadership and the former Minister of Communications, Isa Pantami, but no lasting solution has been reached.