USSD Debt: NCC, Telcos Rule Out Deadline Extension For Banks

The Nigerian Communications Commission and telecommunications companies have ruled out any extension to the deadline for banks to settle their Unstructured Supplementary Service Data debts.

This decision leaves defaulting lenders scrambling to meet the deadline by the close of business on Monday.

Initially, nine banks were in arrears, but by Friday, the number had dropped to seven, according to the telcos who spoke to our correspondent. Of these, only two lenders had made payments. By Monday’s close, one more bank indicated its intention to settle, leaving six banks still in arrears.

This unfolding development follows a directive issued by the telecom regulator on January 15, 2025, warning the nine banks to clear their debts by January 27, 2025, or risk losing access to their USSD codes—an essential service enabling millions of Nigerians to conduct banking transactions without internet access.

The Chairman of the Association of Licensed Telecommunications Operators of Nigeria, Gbenga Adebayo, confirmed to The PUNCH that the number of defaulting banks had decreased to seven as of Friday. However, only two banks had made their payments.

“One of these seven has reached out to confirm that they will settle their debt today (Monday), which will leave about five or six banks still outstanding,” Adebayo explained.

This current enforcement, Adebayo explained, is part of the first phase of a structured payment plan outlined in a December 20 memo from the NCC and the CBN.

The memo details a three-phase payment obligation for banks to settle the N250bn USSD debt, with clear deadlines for each phase.

The first phase requires banks to settle 60 per cent of all outstanding pre-API invoices by January 2, 2025.

Adebayo emphasised that this first phase is critical, as failure to meet the deadline could trigger disconnection of USSD services, a vital channel for millions of Nigerians who rely on mobile banking for everyday transactions.

“This is just the first phase of the directive. We hope that banks who have complied with this phase will continue to meet their obligations in subsequent ones,” he said.

The second phase will see banks required to complete full payment of all pre-API invoices by July 2, 2025. Following that, the third phase mandates the settlement of 85 per cent of post-API invoices by December 31, 2025.

“When it comes to the second and third phases, we expect full compliance,” Adebayo noted. “Non-compliance at any stage will have consequences, and we hope to avoid any disruption of services.”

When asked about the possibility of an extension, Adebayo ruled it out, stating that any such decision would need joint approval from both regulators.

“No, there will be no extension. If there is to be one, it would require joint approval from the NCC and CBN, but I doubt that either regulator would act without consulting the other,” he explained.

The ATCON chairman urged banks to comply to avoid disruption of mobile banking services, which millions of Nigerians rely on.

“It’s crucial for non-compliant banks to settle their debts to ensure we don’t disrupt the economy and the digital services subscribers depend on,” Adebayo added.

Speaking on the matter, the Director of Public Affairs at the NCC, Reuben Mouka, reiterated that today is the deadline as outlined in the commission’s January 15 directive.

“We have clearly stated in our publications that disconnection will occur if banks fail to meet the payment deadline,” Mouka said. “It is now up to the telecom operators to decide whether or not to disconnect the services.”