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The Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) have ordered banks to pay telecom operators the N250 billion they owe for USSD services. Strict deadlines have been given to resolve the long-standing issue.
USSD Transactions Decline
The use of USSD for financial transactions has dropped significantly, as more people switch to internet banking. From January to June 2024, the number of USSD transactions fell by over 150%, dropping from 630.6 million in 2023 to just 252.06 million. The value of these transactions also fell by more than half, from N4.84 trillion to N2.19 trillion.
Payment Deadlines
According to a memo issued on December 20:
- Banks must pay 85% of debts owed since February 2022 by December 31, 2024.
- 85% of new invoices must be paid within one month of receipt.
- A payment plan for older debts (before February 2022) must be agreed upon by January 2, 2025, with full repayment by July 2, 2025.
New Billing Rules
The new rules also prevent telecom operators from charging for USSD sessions that last less than 10 seconds. Banks that fail to comply face penalties, including fines and restrictions on their operations.
Telecom Operators Speak Out
Gbenga Adebayo, Chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON), criticized banks for failing to pay what they owe. He emphasized that the debt, now over N200 billion, cannot be ignored or written off.
“This money must be paid, and we are ready to disconnect banks that don’t comply,” Adebayo said. He also warned that fluctuating foreign exchange rates could increase the debt further if it is not settled quickly.
Urgent Action Needed
Although talks have been ongoing, Adebayo expressed frustration over the lack of progress. He called on all parties to act swiftly to resolve the issue and avoid disruptions in the financial and telecom sectors.
