The Nigerian Communications Commission (NCC) has directed telecommunications companies to disconnect the Unstructured Supplementary Service Data (USSD) codes of nine financial institutions due to unpaid debts.
This action, which could significantly disrupt mobile banking services, must be enforced by January 27, 2025, if the banks fail to settle their outstanding obligations, NCC averred.
The affected banks are 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 institutions owe substantial amounts to telecommunications operators, some of which have remained unpaid since 2020.
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According to the NCC’s notice, signed by its director of Public Affairs, Reuben Muoka, on Tuesday, the failure of the banks to comply with a joint directive from the Central Bank of Nigeria (CBN) and the NCC has prompted the ultimatum.
The notice warns that consumers may face disruptions in accessing USSD services, which are vital for mobile banking, if the debts remain unresolved.
USSD codes, such as 770, 919, and 822, are critical for providing banking services to customers without internet access. The commission stated that unresolved debts could lead to the reassignment of the codes to other applicants.
Part of the notice read, “By the information made available to the commission as at close of business on Tuesday, 14th January 2025, of a total of 18 financial institutions, the nine institutions listed below have failed to comply significantly with the directives in the Second Joint Circular of the Central Bank of Nigeria and the commission dated December 20, 2024, for the settlement of outstanding invoices due to MNOS, some since 2020.”
The regulator noted that banks’ failure to comply with the CBN-NCC joint circular also means that they were unable to meet the good standing requirements for the renewal of the USSD codes assigned to them by the commission.
It added, “In fulfilment of its consumer protection mandate, the commission wishes to inform consumers that they may be unable to access the USSD platform of the affected financial institutions from January 27, 2025.”
This development underscores ongoing tensions between telecom operators and financial institutions over unpaid USSD-related debts, a challenge that has persisted for years.