Following compliance failure by some Deposit Money Banks (DMBs) to settle their indebtedness to Mobile Network Operators (MNOs) over unpaid USSD services, telecoms regulator, the Nigerian Communications Commission (NCC) has granted approval to MNOs to disconnect Unstructured Supplementary Service Data (USSD) codes assigned to the affected financial institutions.
The NCC, in a Statement signed by its Director, Public Affairs, Mr. Reuben Muoka, on Wednesday, said that this action will take effect if outstanding invoices are not settled by Monday, January 27, 2025.
The telecom regulatory body, in line with its mandate to safeguard consumer interests, informs the public that access to USSD platforms provided by affected financial institutions may be disrupted starting January 27, 2025.
It will be recalled that the NCC and its financial sector counterpart, the Central Bank of Nigeria (CBN) had in a joint statement in December 2024, ordered DMBs to settle the long-standing dispute over a collective N250 billion debt owed telecom operators before January 2, 2025.
The directive further stipulated term of repayment to include:
- That 60% of all pre-API invoices must be paid as full and final settlement.
- Payment plans (lump sum or installments) must be agreed upon between a concerned DMB and MNO by January 2, 2025. Installments must be based on equal monthly payments, with full payment due by July 2, 2025.
- DMBs must pay 85% of all outstanding invoices issued after the implementation of APIs (February 2022) by December 31, 2024.
- Similarly, 85% of future invoices must be liquidated within one month of service.”
Following the permission to disconnect the USSD services to erring banks, the NCC says it will also recover such USSD codes and may reassign them to other applicants as per its Guidelines on Short Code Operation in Nigeria, 2023.
As of Tuesday, January 14, 2025, the Commission identified nine financial institutions that have significantly failed to comply with the directives outlined in the Second Joint Circular issued by the Central Bank of Nigeria (CBN) and the NCC on December 20, 2024.
The non-compliance has also rendered these institutions ineligible to meet the “Good Standing” requirements necessary for the renewal of their USSD codes.
The affected Financial Institutions and USSD Codes are:
- Fidelity Bank Plc- 770
- First City Monument Bank – 329
- Jaiz Bank Plc – 773
- Polaris Bank Limited- 833
- Sterling Bank Limited- 822
- United Bank for Africa Plc- 919
- Unity Bank Plc- 7799
- Wema Bank Plc- 945
- Zenith Bank Plc- 966
The NCC reiterates that these financial institutions have been duly notified and urged them to comply immediately to avoid disruptions.
This development underscores the NCC’s commitment to ensuring fair practices and consumer protection within the telecommunications sector.
