In a decisive move to address the lingering N250 billion USSD debt impasse, the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) have issued a joint directive to Deposit Money Banks (DMBs) and Mobile Network Operators (MNOs). This directive, titled “2nd Joint Circular of the Central Bank of Nigeria and the Nigerian Communications Commission on the Resolution of the USSD Debt Issue between Deposit Money Banks and Mobile Network Operators”, was obtained exclusively by Time Nigeria Magazine.
Dated December 20, 2024, the circular marks a turning point in the protracted conflict over the use of USSD platforms for banking services. Signed by Oladimeji Taiwo, the Acting Director of Payments System Management at the CBN, and Chizua Whyte, Head of Legal and Regulatory Services at the NCC, the directive provides a roadmap for resolving the debt crisis, which has strained relations between the financial and telecommunications sectors for years.
The circular mandates that 60% of all pre-API (Application Programming Interface) invoices must be paid as a full and final settlement by July 2, 2025. To this end, DMBs and MNOs are required to agree on payment plans—either a lump sum or equal monthly installments—by January 2, 2025.
For post-API debts, accrued after APIs were introduced in February 2022, the directive is even more stringent. DMBs must clear 85% of all outstanding invoices by December 31, 2024, and future invoices must be settled within one month of issuance.
In addition to addressing the financial obligations, the CBN and NCC have called for an immediate halt to all litigation tied to the USSD debt issue. The circular further emphasizes that only compliant DMBs and MNOs will transition to end-user billing (EUB), a move expected to streamline future transactions.
Pending this transition, MNOs are directed to enforce a “10-seconds rule,” under which sessions lasting less than ten seconds will not be billable. This is seen as a temporary relief measure for customers while a lasting solution is implemented.
The regulatory bodies have not minced words about the consequences of failing to comply with the outlined directives. The circular warns that non-compliance will attract stiff sanctions from the relevant authorities, reaffirming the regulators’ commitment to ensuring stability in both the financial and telecommunications sectors.
This joint effort by the CBN and NCC signals a renewed commitment to resolving a dispute that has hampered the growth and efficiency of digital financial services in Nigeria. By introducing structured settlement plans, promoting transparency, and holding parties accountable, the regulators aim to foster a more collaborative relationship between DMBs and MNOs.
As Nigeria continues its march toward a cashless economy, resolving the USSD debt issue is not just a financial necessity but a critical step in ensuring that digital platforms remain reliable and accessible to millions of Nigerians.
