- 18 Banks Yet to Settle Debts Despite Payment Deadline
- Public Notification and Service Suspension Loom Large
The Nigerian Communications Commission (NCC) is preparing to take decisive action to resolve the long-standing dispute between telecommunications companies and banks over unpaid Unstructured Supplementary Service Data (USSD) debts, sources close to the matter have disclosed.
The commission is reportedly considering suspending USSD services entirely and publishing a list of defaulting banks, effectively cutting off a critical channel for banking transactions.
Although no official date has been announced for the potential suspension, insiders indicate the NCC might release the list of indebted banks before the week ends. This development is viewed as part of broader efforts by the federal government to address challenges within the telecommunications and financial sectors, including ongoing discussions about tariff adjustments by telcos.
USSD Debt Escalates by Over 680% Since 2019
An analysis of industry reports reveals an alarming 681.2% increase in USSD debts since 2019. The issue first gained public attention in 2021, when telecom operators threatened to suspend USSD services over N42 billion owed by banks. Despite a temporary resolution brokered by Isa Pantami, the former communications minister, debts have continued to skyrocket.
In November 2022, the debt stood at N80 billion, surging to N200 billion by November 2023. By October 2024, it had reached N250 billion, according to Gbolahan Awonuga, executive secretary of the Association of Licensed Telecommunications Operators of Nigeria (ALTON).
Attempts by the NCC, the Central Bank of Nigeria (CBN), and other stakeholders to mediate the conflict have yielded minimal results. Last month, the CBN and NCC directed banks to clear 85% of all outstanding invoices by December 31, 2024, but compliance has been sluggish.
18 Banks Still Owing as of December 31
As of the December deadline, only four banks had settled their debts, while 18 others remain in default. A source close to the NCC suggested that the banks’ perceived nonchalance has prompted the commission to escalate matters by notifying the public and issuing a two-week grace period for consumers to explore alternative transaction methods.
“The notice will name the banks yet to pay, and customers will be advised to seek alternative arrangements for transactions,” the source explained. If the banks fail to settle their debts within the two-week window, they risk being disconnected from USSD services entirely.
With tension mounting, the NCC’s move could significantly impact Nigeria’s banking and telecommunications sectors, leaving millions of customers scrambling for alternative ways to conduct transactions.
