The Central Bank of Nigeria, CBN, and the Nigerian Communications Commission, NCC, have jointly issued a final directive to Deposit Money Banks , DMBs, and Mobile Network Operators, MNOs, to settle their ₦250 billion Unstructured Supplementary Service Data, USSD, debt dispute.
The directive, contained in a joint circular dated December 20, 2024, was signed by Oladimeji Taiwo, Acting Director of Payments System Management at the CBN, and Chizua Whyte, Head of Legal and Regulatory Services at the NCC.
The circular outlines a structured repayment plan and introduces new operational guidelines for USSD services.
DMBs are required to pay 60% of debts incurred before February 2022 when Application Programming Interfaces (APIs) were introduced. This payment will serve as a full and final settlement of pre-API debts.
Payment agreements (lump sum or installments) must be concluded by January 2, 2025, with full settlement due by July 2, 2025.
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Banks must pay 85% of all outstanding invoices by December 31, 2024. Future invoices must also be settled at 85% within one month of issuance.
All ongoing legal disputes over USSD debts must be discontinued. Non-compliance with the payment terms will attract severe sanctions from regulators.
“In light of the above, the CBN and NCC direct all DMBs and MNOs to comply strictly with the payment terms to achieve a final resolution of this matter. Failure to comply will result in sanctions,” the circular stated.
The directive also mandates a shift to end-user billing (EUB) for USSD services. However, this transition applies only to banks and telcos that meet the stipulated payment obligations. Until the EUB model is fully implemented, operators must adhere to a “10-second rule,” ensuring that sessions lasting less than 10 seconds are not charged.
Banks using prepaid billing systems may migrate to the EUB model with regulatory approval.
The directive seeks to address rising tensions between banks and telecom operators, who have long demanded a clear payment framework to resolve the debt issue. The unresolved dispute has strained the relationship between the two sectors, with telecom operators voicing concerns over delayed payments for USSD services.
USSD services remain critical for financial inclusion in Nigeria, especially in rural areas with limited smartphone penetration and internet access. Banks rely heavily on USSD for mobile banking, airtime top-ups, bill payments, and other essential services.
The CBN and NCC have emphasized the importance of compliance to ensure the dispute is resolved and USSD services continue to support financial accessibility across the country.
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