The Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) have directed Deposit Money Banks (DMBs) and Mobile Network Operators (MNOs) to settle the protracted N250 billion debt dispute over Unstructured Supplementary Service Data (USSD) services.
In a joint circular 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’, dated December 20, 2024, the regulators outlined measures to resolve the long-standing issue between the two parties.
The circular was jointly signed by the Acting Director of the Payments System Management Department at the CBN, Oladimeji Taiwo, and the Head of Legal and Regulatory Services at the NCC, Chizua Whyte.
To address the dispute, the CBN and NCC mandated that DMBs must pay 60% of all outstanding pre-API invoices as a full and final settlement, payment plans—either lump sum or installment—must be agreed upon by January 2, 2025 and installment payments must be completed by July 2, 2025.
The circular also noted that DMBs must pay 85% of outstanding post-API invoices by December 31, 2024, and all future post-API invoices must be settled within one month of issuance.
On the issue of litigation discontinuation, both DMBs and MNOs were directed to immediately halt all legal actions related to the USSD debt issue, failure to comply with the directives, the circular warned, will attract sanctions from the CBN and NCC.
The circular highlighted that the transition to EUB will be activated only for compliant DMBs and MNOs. Pending finalisation of the transition, MNOs have been instructed to adopt a “10-second rule” for USSD billing, which exempts sessions lasting less than 10 seconds from charges.
Additionally, DMBs using prepaid billing systems have the option to migrate to EUB, provided they completed the necessary regulatory processes.
LEADERSHIP reports that this directives come amid growing tension between the financial services and telecommunications sectors over unpaid USSD debts.
The circular also highlighted plans for public enlightenment initiatives to educate end-users about the transition to EUB, aimed at fostering transparency and improving the customer experience.
Both bodies underscored their commitment to resolving the dispute and ensuring stability in the financial and telecommunications sectors, noting that non-compliance with the directives will not be tolerated.
“Failure to comply with the terms outlined in this directive will attract necessary sanctions, ensuring that both DMBs and MNOs uphold their obligations,” the circular stated.