- The Nigeria Communications Commission has ordered telecommunications companies to disconnect FCMB, UBA, Sterling Bank, and six others over USSD debt
- The nine banks will be disconnected by January 27, 2025
- NCC said the USSD codes of affected banks will be reassigned to new applicants
The Nigerian Communications Commission (NCC) has ordered telecommunications companies to disconnect the Unstructured Supplementary Service Data (USSD) codes assigned to nine financial institutions over unpaid debts.
This directive was contained in a public notice signed by NCC’s Director of Public Affairs, Reuben Muoka, on Tuesday, January 14.
It noted that the affected banks are to pay the outstanding debts owed telcos by January 27, 2025, or risk losing access to their USSD codes.
The affected banks include Fidelity Bank Plc, First City Monument Bank (FCMB), Jaiz Bank Plc, Polaris Bank Limited, Sterling Bank Limited, United Bank for Africa (UBA) Plc, Unity Bank Plc, Wema Bank Plc, and Zenith Bank Plc.
The notice stated that nine out of an initial 18 banks had not complied with regulatory directives to offset their debt. It, however, did not disclose how much the unpaid debt amounted to.
The total amount initially owed by banks was reported to be N250 billion, and some of the invoices have remained unpaid since 2020, according to the NCC.
“By the information made available to the commission as at close of business on Tuesday, 14th January 2025, of a total of 18 financial institutions, the nine institutions listed below have failed to comply significantly with the directives in the second joint circular of the Central Bank of Nigeria and the commission dated December 20, 2024, for the settlement of outstanding invoices due to MNOS, some since 2020.”
Recall that telcos sought the NCC’s approval to halt bank transfer services over the unpaid debt, which has been in contention for years.
USSD codes of affected banks will be reassigned
The NCC also warned that the USSD codes of affected banks will be reassigned to other applicants if the debts remain unpaid.
The affected USSD codes include 770, 919, and 822, among others.
It added that the banks’ failure to comply with the CBN-NCC joint circular, issued on December 20, 2024, also means that they are unable to meet the good standing requirements for the renewal of the USSD codes assigned to them by the commission.
In the circular, the Central Bank of Nigeria and the NCC directed banks and Mobile Network Operators to agree on a payment plan for the N250 billion USSD debt by January 2, 2025.
The commission stressed that the affected banks have been notified of the need for immediate compliance, warning that consumers may face service disruptions if the issues remain unresolved.
It said, “In fulfilment of its consumer protection mandate, the commission wishes to inform consumers that they may be unable to access the USSD platform of the affected financial institutions from January 27, 2025.”
NCC approves disconnection of Exchange Telecoms from MTN Nigeria over unpaid charges
Meanwhile, TheRadar earlier reported that the Nigerian Communications Commission (NCC) sanctioned the disconnection of Exchange Telecoms from MTN Nigeria due to unpaid interconnect charges.
According to the report, Exchange Telecoms failed to provide satisfactory explanations for its inability to pay the charges.
