NCC Directs Telcos to Disconnect Nine Banks Over USSD Debt

The Nigerian Communications Commission (NCC) orders telecom operators to disconnect nine banks due to unpaid USSD debts, potentially disrupting banking services nationwide.

Due to a buildup of unpaid debts, the Nigerian Communications Commission has permitted telecommunications companies to disconnect the Unstructured Supplementary Service Data (USSD) codes allocated to nine financial institutions.

The directive, signed by Reuben Muoka, the Director of Public Affairs at NCC on Tuesday and acquired by Channels Television, stated that the banks involved must settle their outstanding debts by January 27, 2025. Failure to do so may result in them losing access to their USSD codes.

However, the regulator did not disclose how much debt was owed by the nine banks.

The public notice from the NCC indicates that half of the 18 financial institutions have failed to comply with regulatory directives.

It stated that although other banks have settled their debts, the total initial amount owed by these financial institutions reportedly exceeded N200 billion.

The NCC reports that several invoices have been outstanding since 2020.

A section of the notice stated, “Based on information provided to the commission as of close of business on Tuesday, January 14th, 2025, out of a total of 18 financial institutions, the nine listed below have significantly failed to adhere to the directives in the Second Joint Circular issued by both the Central Bank of Nigeria and our commission dated December 20th, 2024. This circular pertains to settling outstanding invoices owed to MNOS from as far back as 2020.”

The impacted financial institutions 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.

The impacted USSD codes, such as 770, 919, and 822, among others, might be reassigned to other applicants if the debts are not settled.

The regulator pointed out that the banks’ non-compliance with the joint CBN-NCC circular results in their inability to fulfill the necessary good standing criteria for renewing their USSD codes issued by the commission.

It stated, “To fulfill its consumer protection mandate, the commission wants to inform consumers that access to the USSD platform of the affected financial institutions may be unavailable beginning January 27, 2025.”

The NCC stressed that the financial institutions have been properly informed about the necessity for immediate compliance and cautioned that consumers could experience service disruptions if these issues are not addressed.

During the period from January to June 2024, data from the CBN showed that 252.06 million transactions, amounting to N2.19 trillion, were carried out through USSD.