Nigeria’s telecom operators have kept Unstructured Supplementary Service Data (USSD) services active after banks made significant progress in repaying their outstanding debts, averting a potential disruption that could have impacted millions of users.
The Nigerian Communications Commission (NCC) had issued a warning on January 15, 2024, stating that nine banks would be cut off from USSD services by January 27 if they failed to settle debts accumulated since 2019. However, the banks acted swiftly to resolve the issue, preventing service disruptions. Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), confirmed the resolution at a CEO forum in Lagos, stating, “The matter has been de-escalated. Money has been paid, and we are making progress thanks to the regulators.”
The affected banks included 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 dispute originated in 2019 when banks began incurring charges for using USSD services provided by telecom companies but struggled to settle the fees, leading to the accumulation of debt.The resolution follows a structured payment plan outlined in a December 20, 2024, memo from the NCC and the Central Bank of Nigeria (CBN). The plan requires banks to settle the N250 billion debt in three phases: 60% of all outstanding pre-API invoices by January 2, 2025; full payment of all pre-API invoices by July 2, 2025; and 85% of post-API invoices by December 31, 2025.
The continued availability of USSD services is crucial for millions of Nigerians who rely on the platform for banking transactions, especially in areas with limited internet access. The swift action by banks and regulators highlights the importance of collaboration in maintaining essential services and preventing disruptions that could have far-reaching consequences for the economy and everyday users.
