For years, mobile network operators have been vocal about the strain the unpaid debts have placed on their business operations. As of 2023, the total debt owed by banks to telecom operators was estimated at a staggering N120 billion
- Sets January 27, 2025 as Deadline
By Abdulrahman Aliagan, Abuja
In a dramatic escalation of an ongoing payment dispute, the Nigerian Communications Commission (NCC) has authorized major telecom operators—MTN, Airtel, Globacom, and 9mobile—to disconnect the Unstructured Supplementary Service Data (USSD) codes of nine prominent commercial banks in Nigeria. The move comes after years of mounting complaints from telecom companies over unpaid debts for USSD services that these banks have continued to charge their customers for.
At the heart of the issue are longstanding debts owed by these financial institutions to the telecom operators, stemming from USSD services used for mobile banking. Despite the growing tensions, the affected banks—First City Monument Bank (FCMB), Zenith Bank, Sterling Bank, Jaiz Bank, UBA, Polaris Bank, Unity Bank, Fidelity Bank, and Wema Bank—have failed to settle their dues, which, according to the Nigerian Communications Commission (NCC), date back to 2020.
The news of the impending disconnection was confirmed in an official notice from the NCC, which granted the telecom operators the go-ahead to sever access to the USSD platforms of these banks by January 27, 2025, unless the debts are fully paid. With millions of bank customers relying on USSD for everyday transactions—from checking balances to transferring funds—the disconnection would send shockwaves across the banking sector, potentially crippling mobile banking services for millions of Nigerians.
In response, the NCC has granted the banks a brief two-week window to settle their outstanding payments. The regulatory body, which shares oversight over the telecommunications and financial sectors with the Central Bank of Nigeria (CBN), also made it clear that failure to comply would result in the permanent forfeiture of these USSD codes. The codes, crucial for mobile banking operations, could be reassigned to other financial institutions that meet the regulatory requirements.
The conflict between the banks and telecom companies has been brewing for some time. In December 2024, the CBN and NCC jointly issued a directive mandating the banks to pay a significant portion of their outstanding invoices, some of which had been pending since 2020. Under this directive, the banks were also required to stop any legal actions related to the debts, and were given clear instructions to settle the outstanding amounts in an effort to preserve the integrity of the USSD service ecosystem.
For years, mobile network operators have been vocal about the strain the unpaid debts have placed on their business operations. As of 2023, the total debt owed by banks to telecom operators was estimated at a staggering N120 billion. While the telecom companies had previously threatened disconnection, their actions were ultimately stymied by the need for regulatory approval—a hurdle that has now been cleared with the NCC’s green light.
According to the NCC’s statement, as of January 14, 2025, nine out of the 18 financial institutions involved had failed to meet the guidelines outlined in the joint CBN-NCC circular. The banks’ inability to comply with the payment directive has left them in breach of the “Good Standing” requirements necessary to maintain their USSD codes.
The telecom regulator has also emphasized its role in consumer protection, warning that customers of the affected banks may soon find themselves unable to access USSD banking services. For the millions of Nigerians who rely on mobile phones for banking, this could be a major inconvenience, forcing many to seek alternative means for transactions.
With the deadline fast approaching, the affected banks are now under intense pressure to resolve the matter and avoid the potential fallout from a disconnection. If the USSD codes are severed, it could signal a fundamental shift in the relationship between Nigerian banks and telecom operators, as well as a wake-up call for the financial sector to settle its outstanding debts and honor its commitments.
In what is shaping up to be one of the most significant developments in Nigeria’s telecom and banking industries, all eyes will be on January 27, 2025—the final day before the axe falls on the USSD codes of the nine non-compliant banks.
Only time will tell if this deadline will serve as the catalyst for long-awaited change or as the start of an even bigger showdown between the two sectors.
