The Nigerian Communications Commission, NCC, has instructed telecom companies to disconnect the Unstructured Supplementary Service Data , USSD, codes of nine financial institutions due to outstanding debts.
The directive was issued in a public notice signed on Tuesday by Reuben Muoka, NCC’s Director of Public Affairs.
The commission states that the affected banks must clear their debts by January 27, 2025, or face permanent loss of access to their USSD codes.
These codes, vital for mobile banking, could be reassigned to other applicants if the debts remain unpaid.
As of the close of business on Tuesday, nine of the 18 financial institutions under review had not complied with the regulatory requirements.
While other banks have settled their debts, the overall amount owed by these institutions initially exceeded N200 billion. However, the NCC did not disclose the exact sum still outstanding.
The unpaid debts have reportedly been due since 2020, indicating an ongoing dispute between the affected banks and telecom operators.
The NCC’s notice highlighted that the banks’ failure to settle their debts means they no longer meet the good standing criteria for USSD code renewals as outlined in the joint circular issued by the Central Bank of Nigeria , CBN, and the NCC on December 20, 2024.
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The commission emphasized that, in line with its consumer protection mandate, it would inform consumers that they might experience disruptions in accessing USSD services from the affected financial institutions after January 27, 2025.
The banks involved include 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 impacted USSD codes include numbers such as 770, 919, and 822.
The NCC has made it clear that the banks were duly notified about the need for prompt compliance and warned that consumers may experience service disruptions if the debts are not resolved.
This latest development underscores the ongoing financial tensions between telecom operators and financial institutions over USSD-related fees, which have persisted for several years.
USSD transactions have become a critical component of mobile banking, with data from the CBN showing that 252.06 million transactions worth N2.19 trillion were completed via USSD between January and June 2024. This marks a notable increase from 2023 when 630.6 million transactions valued at N4.84 trillion were recorded.
Originally designed for non-banking services like airtime purchases, USSD has evolved into a key tool for financial services, offering users the ability to conduct transactions without needing an internet connection.
Crediblenewsng.com
