CBN, NCC Mandate Banks, Telcos To Resolve N250bn USSD Debt Impasse
The Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) have directed Deposit Money Banks (DMBs) and Mobile Network Operators (MNOs) to settle the long-standing N250 billion debt dispute related to Unstructured Supplementary Service Data (USSD) services.
In a joint circular titled ‘2nd Joint Circular of the Central Bank of Nigeria and the Nigerian Communications Commission on the Resolution of the USSD Debt Issue Between Deposit Money Banks and Mobile Network Operators’, dated December 20, 2024, the two regulators outlined the necessary steps to resolve the issue.
The circular was jointly signed by Oladimeji Taiwo, Acting Director of the Payments System Management Department at the CBN, and Chizua Whyte, Head of Legal and Regulatory Services at the NCC.
Key Directives:
- Settlement of Debt:
- 60% of all outstanding pre-API invoices must be paid as full and final settlement by DMBs.
- Payment plans (lump sum or installment) should be agreed upon by January 2, 2025, with installment payments to be completed by July 2, 2025.
- 85% of outstanding post-API invoices must be settled by December 31, 2024, with all future post-API invoices to be paid within one month of issuance.
- Litigation Discontinuation:
Both DMBs and MNOs have been directed to immediately halt all legal actions related to the USSD debt issue. Non-compliance will result in sanctions from the CBN and NCC. - USSD Billing Rules:
MNOs are instructed to adopt a “10-second rule” for USSD billing, exempting sessions lasting less than 10 seconds from charges. - EUB Transition:
Only compliant DMBs and MNOs will transition to EUB (Extended Usability Billing). DMBs using prepaid billing systems may migrate to EUB after completing necessary regulatory processes.
The circular emphasized that both sectors, financial and telecommunications, must ensure stability, and any failure to comply with these directives would attract penalties.
Additionally, public enlightenment initiatives will be launched to educate end-users about the transition to EUB, aiming to enhance transparency and improve the customer experience.
This move comes amid rising tensions over unpaid USSD debts, and both the CBN and NCC have reiterated their commitment to resolving the matter promptly.
