Nigerian banks have made significant progress in repaying their Unstructured Supplementary Service Data (USSD) debts, preventing disconnection of services by telecom operators.
USSD Debt Situation
Telecom operators like MTN, Airtel, and Glo were authorized to disconnect the USSD codes of nine banks that failed to pay debts amounting to N250 billion. However, these banks have made considerable progress in settling their debts, ensuring continued access to the USSD platform crucial for customers without internet access. These banks included Fidelity Bank, First City Monument Bank, Jaiz Bank, and others.
Regulatory Actions
This was part of the first phase of a structured payment plan outlined in a December 2024 agreement between the NCC and the Central Bank of Nigeria. The regulators warned banks to settle the debts by January 27, 2025. The NCC’s notice stated that several banks failed to comply with the joint circular's directives.
Future Interactions
The USSD debt issue had intensified due to disputes between mobile operators and banks. Regulators had issued a joint document outlining payment procedures to resolve the disputes. Banks are required to pay 85% of debts incurred after February 2022 by December 31, 2024, and 60% of pre-API debts by January 2, 2025.
Resolving USSD debt is critical for maintaining essential services for customers without internet access, serving as a vital financial tool in Nigeria.
