CBN and NCC Direct Banks and Telecom Operators to Settle N250bn USSD Debt, Outline Payment Plans
The Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) have directed Deposit Money Banks (DMBs) and Mobile Network Operators (MNOs) to resolve the ongoing N250 billion USSD debt dispute. This directive, outlined 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,” was issued on December 20, 2024.
This move follows growing concerns within both sectors over the unresolved debt, with telecom operators urging regulators to implement a structured payment plan. The circular, signed by Oladimeji Taiwo, Ag Director of the CBN’s Payments System Management Department, and Chizua Whyte, Head of Legal and Regulatory Services at the NCC, highlights the persistent nature of the dispute over the use of MNOs’ USSD platforms for banking services.
To address the issue, the CBN and NCC have set clear guidelines for settling the debt. They require DMBs and MNOs to agree on payment plans—either a lump sum or in installments—by January 2, 2025. For pre-API invoices, which relate to transactions before the introduction of Application Programming Interfaces (APIs) in February 2022, DMBs are directed to settle 60% of the outstanding amounts as full and final payment. If installment payments are chosen, they must be completed by July 2, 2025.
For post-API debts, DMBs are mandated to pay 85% of all outstanding invoices by December 31, 2024. Future invoices must be cleared within one month of issuance. Additionally, the CBN and NCC have instructed the immediate cessation of any legal action related to the USSD debt issue, with the threat of sanctions for non-compliance.
The circular also details the transition to end-user billing (EUB) for both DMBs and MNOs, which will only be activated upon adherence to the payment terms. Until then, MNOs are required to apply the “10-seconds rule” for USSD invoicing, meaning sessions lasting less than 10 seconds will not incur charges. DMBs with prepaid billing options may migrate to EUB once they complete the necessary regulatory processes.
The CBN and NCC have stressed that failure to comply with these directives will result in sanctions, signaling their commitment to resolving the dispute and ensuring the stability of both the banking and telecommunications sectors in Nigeria.
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