The Nigerian Communications Commission has instructed telecommunications companies to disconnect the Unstructured Supplementary Service Data codes assigned to nine banks due to unpaid debts.
In a public notice issued on Tuesday, signed by the NCC’s Director of Public Affairs, Reuben Muoka, the affected banks were given until January 27, 2025, to settle their debts or risk losing access to the USSD codes. These codes, critical for mobile banking services, may be reassigned to other applicants if the banks fail to pay.
The banks in question are Fidelity Bank Plc, First City Monument Bank, Jaiz Bank Plc, Polaris Bank Limited, Sterling Bank Limited, United Bank for Africa Plc, Unity Bank Plc, Wema Bank Plc, and Zenith Bank Plc. Popular codes like 770, 919, and 822 are among those at risk.
According to the NCC, as of the close of business on Tuesday, nine out of 18 financial institutions had failed to comply with the directives in a joint circular issued by the Central Bank of Nigeria (CBN) and the NCC on December 20, 2024. The circular required the banks to settle outstanding invoices for USSD services.
Some of these unpaid debts have been outstanding since 2020, highlighting a long-standing financial dispute between telecom operators and banks. While the total initial debt was over N200 billion, the current amount owed by the nine banks has not been disclosed.
The NCC warned that customers might experience disruptions in accessing USSD services from the affected banks starting January 27, 2025, if the debts are not resolved. The commission also noted that failure to comply with the joint circular could impact the renewal of the USSD code licenses for the banks.
USSD, originally developed by telecom operators for airtime purchases, has become a crucial tool for banking services, allowing users to perform transactions without an internet connection. Data from the CBN revealed that 252.06 million USSD transactions worth N2.19 trillion were conducted between January and June 2024, compared to 630.6 million transactions valued at N4.84 trillion in 2023.
This development highlights ongoing tensions between telecommunications companies and financial institutions over unpaid USSD-related debts, a challenge that has persisted for years. The NCC urged the affected banks to act swiftly to avoid service interruptions for millions of customers.
