The Nigerian Communications Commission (NCC) and telecommunications companies have maintained a hardline stance, refusing to extend the deadline for banks to clear their Unstructured Supplementary Service Data (USSD) debts. This decision heightens pressure on defaulting lenders as the Monday deadline looms.
Out of the nine banks initially flagged for non-payment, seven remained in arrears as of Friday, with only two having settled their debts. By the close of business Monday, another bank signaled its intention to comply, leaving six banks at risk of losing access to the critical USSD infrastructure.
The telecom regulator’s January 15 directive had warned banks to meet their payment obligations by January 27, 2025, or face disconnection from USSD services. These services enable millions of Nigerians to perform banking transactions without internet access, making them essential for financial inclusion and everyday transactions.
The Association of Licensed Telecommunications Operators of Nigeria (ALTON) confirmed the progress of payments but highlighted that significant arrears remain. ALTON Chairman, Gbenga Adebayo, described the debt repayment as part of a structured plan issued jointly by the NCC and the Central Bank of Nigeria (CBN) on December 20, 2024.
“This is just the first phase of the directive. We hope that banks who have complied with this phase will continue to meet their obligations in subsequent ones,” Adebayo stated. He warned that non-compliance could result in the disconnection of USSD services.
The payment plan is divided into three phases. The second phase mandates banks to clear all pre-API invoices by July 2, 2025, while the final phase requires the settlement of 85 percent of post-API invoices by December 31, 2025.
Adebayo emphasized that regulatory enforcement will be strict across all phases. “When it comes to the second and third phases, we expect full compliance. “Non-compliance at any stage will have consequences, and we hope to avoid any disruption of services.”
The NCC has also reinforced its position, ruling out any extension. The Director of Public Affairs, Reuben Mouka, reiterated that the January 27 deadline is final. He also said Telecom operators have the authority to disconnect services if banks fail to meet the deadline.
Industry analysts have raised concerns about the potential impact of disconnection, particularly on Nigeria’s financial sector, which heavily depends on USSD for digital transactions. Adebayo called on defaulting banks to act swiftly to avoid disruptions that could destabilize the economy and inconvenience millions of subscribers.
