The Nigerian Communications Commission (NCC) and telecom firms have rejected extending the timeframe for banks to pay off their debts related to Unstructured Supplementary Service Data (USSD).
In light of this ruling, lenders that are in default are rushing to fulfil the deadline by Monday’s close of business.
The telecom companies told reporters that by Friday, there were just seven banks behind on their payments, down from nine at the beginning. Merely two of these lenders had been paid. Six banks were still behind on their payments at the end of Monday, when one more bank said that it would settle.
This development comes after the telecom regulator warned the nine banks on January 15, 2025, that they might lose their USSD codes, a crucial service that allows millions of Nigerians to conduct banking transactions without internet access, if they did not pay their debts by January 27, 2025.
Reporters were informed by Gbenga Adebayo, the Chairman of the Association of Licensed Telecommunications Operators of Nigeria, that as of Friday, there were just seven banks in default. Two banks, nevertheless, had already paid.
Five or six banks will remain unpaid, according to Adebayo, who added that one of these seven has contacted him to clarify that they will pay off their obligation today (Monday).
“This current enforcement is part of the first phase of a structured payment plan outlined in a memo from the NCC and the CBN on December 20,” Adebayo explained.
The memorandum outlines a three-phase payment obligation with distinct due dates for banks to satisfy the N250 billion USSD debt.
According to the first phase, banks must pay 60% of all unpaid pre-API invoices by January 2, 2025.
Adebayo underlined the importance of this initial stage, stating that if the deadline is missed, USSD services—a crucial conduit for the millions of Nigerians who depend on mobile banking for daily transactions—may be disconnected.
“This is only the directive’s initial step. We expect that banks that have fulfilled their responsibilities in this phase will continue to do so in future ones,” he stated.
Banks must fully settle all pre-API invoices by July 2, 2025, as part of the second phase. The third step then requires that 85% of post-API invoices be settled by December 31, 2025.
“We anticipate complete compliance about the second and third phases,” Adebayo stated. “There will be repercussions for non-compliance at any point, and we want to prevent any interruption of services.”
He denied the prospect of an extension when questioned, claiming that both regulators would need to agree on any such decision.
“No, an extension is not going to happen. “I doubt that either regulator would act without consulting the other,” he said, noting that if there were to be one, it would need the NCC and CBN’s joint consent.
Millions of Nigerians rely on mobile banking services, which the ATCON chairman encouraged banks to comply with to prevent disruptions.
Adebayo added, “To prevent economic disruption and the disruption of digital services that subscribers rely on, non-compliant banks must pay off their debts.”
Reuben Mouka, the NCC’s Director of Public Affairs, told reporters that the deadline mentioned in the commission’s January 15 directive is today.
“Disconnection will take place if banks miss the payment deadline, as we have made very clear in our publications,” Mouka said.
“The telecom operators now have the final say over whether to cut off the services.”
