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

The Nigerian Communications Commission (NCC) and telecommunications companies have ruled out any extension to the deadline for banks to settle their outstanding Unstructured Supplementary Service Data (USSD) debts. The decision leaves defaulting banks scrambling to meet the payment deadline by the close of business on Monday.

Out of the initial nine banks in arrears, the number dropped to seven by Friday, with only two having made payments. One additional bank signaled its intent to settle by Monday, leaving six still in default.

The situation stems from a directive issued by the NCC on January 15, 2025, warning banks to clear their debts by January 27 or risk disconnection from USSD services. These services are vital for millions of Nigerians who rely on them for banking transactions without internet access.

The Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), Gbenga Adebayo, confirmed the reduction in the number of defaulting banks but emphasized the urgency of compliance.

“One of the remaining seven banks has assured us they will settle their debt today (Monday), leaving five or six banks still outstanding,” Adebayo said.

This enforcement marks the first phase of a structured payment plan detailed in a December 20 memo from the NCC and the Central Bank of Nigeria (CBN). The phased plan requires banks to settle the ₦250 billion USSD debt in installments, with clear deadlines.

  • Phase 1: Payment of 60% of pre-API invoices by January 2, 2025.
  • Phase 2: Full settlement of pre-API invoices by July 2, 2025.
  • Phase 3: Settlement of 85% of post-API invoices by December 31, 2025.

According to Adebayo, compliance with the first phase is critical to avoid disconnection of USSD services, which millions rely on for daily transactions. “Non-compliance at any stage will have consequences,” he warned.

Asked about the possibility of an extension, Adebayo ruled it out. “No, there will be no extension. Any decision to extend would require joint approval from both the NCC and CBN, which is unlikely,” he stated.

The Director of Public Affairs at the NCC, Reuben Mouka, reiterated that the January 27 deadline is final. “We have made it clear that disconnection will occur if banks fail to meet the payment deadline,” he said.

The NCC and telcos urge banks to comply to avoid disruptions in mobile banking services, which are integral to millions of Nigerians.

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