No USSD service disruption as Nigerian Banks cleared debt
No USSD service disruption as Nigerian Banks cleared debt
Telecom operators have kept USSD services active as banks make progress in clearing a N160bn debt, averting potential service disruptions.
Nigeria’s telecom operators have ensured the continued availability of Unstructured Supplementary Service Data (USSD) services after nine banks made significant progress in repaying a debt of N160 billion, averting a disruption that could have impacted millions of customers.
USSD services, crucial for customers without internet access, were at risk of being cut off due to the accumulated liabilities.
On January 15, 2024, the Nigerian Communications Commission (NCC) issued a warning that nine banks would be disconnected from USSD services by January 27, 2024, if they failed to settle their outstanding debts, which had been building up since 2019.
However, the banks swiftly acted to resolve the issue, and the threat of service interruption was lifted.
Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria, confirmed that the matter had been de-escalated.
He stated at a CEO forum in Lagos, “The matter has been de-escalated. Money has been paid, and we are making progress thanks to the regulators.”
The nine banks affected by the potential disconnection notice included 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 issue began in 2019 when banks started incurring charges for using USSD services provided by telecom companies. However, many banks struggled to pay these fees, which led to a substantial accumulation of debt.
This recent development is part of a phased approach to resolve the banks’ debt, outlined in a December 20, 2024 memo from the NCC and the Central Bank of Nigeria (CBN).
The plan is structured into three phases, with the first phase requiring banks to pay 60% of all outstanding pre-API invoices by January 2, 2025.
The second phase mandates full payment of all pre-API invoices by July 2, 2025. The final phase calls for banks to settle 85% of post-API invoices by December 31, 2025.
