From Adanna Nnamani, Abuja
The Nigerian Communications Commission (NCC) has taken decisive action against nine banks, instructing telecommunications companies to disconnect their unstructured supplementary service data (USSD) codes due to outstanding debts.
In a statement released on Friday and signed by Reuben Muoka, the director of public affairs for the NCC, the commission announced that the disconnection of USSD codes will commence on January 27 if the banks fail to settle their outstanding debts.
The banks affected by this directive include Fidelity Bank (770), First City Monument Bank (329), Jaiz Bank (773), Polaris Bank Limited (833), Sterling Bank Limited (832), United Bank for Africa (919), Unity Bank (7799), Wema Bank (945), and Zenith Bank (966).
“Nigerian Communications Commission hereby notifies members of the public that it is granting approval to Mobile Network Operators (MNOs) to disconnect Unstructured Supplementary Service Data (USSD) Codes assigned by the Commission to financial institutions which are indebted to the MNOs if such institutions do not settle the outstanding invoices by Monday, January 27, 2025,” the statement reads.
The NCC also said that it will recover the disconnected codes and may reassign them to other applicants in accordance with relevant regulations.
“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.”
The statement also highlighted the severity of the situation, noting that as of January 14, 2025, of the 18 financial institutions reviewed, nine have notably failed to adhere to the directives outlined in the Second Joint Circular issued by the Central Bank of Nigeria (CBN) and the NCC on December 20, 2024. These outstanding invoices have remained unpaid by some institutions since 2020.
Failure to comply with the CBN-NCC Joint Circular means these banks are unable to meet the Good Standing requirements necessary for the renewal of their USSD Codes.
“The financial institutions have been duly notified of the need for immediate compliance in accordance with the Commission’s Guidelines on Short Code Operation in Nigeria, 2023,” the NCC stated.
As of October 22, 2024, Gbolahan Awonuga, the executive secretary of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), revealed that banks owe N250 billion for USSD services.
The NCC, Central Bank of Nigeria (CBN), and other stakeholders have been in discussions to resolve this issue, but progress has been minimal.
The CBN and NCC, on December 24, 2024, instructed mobile network operators and deposit money banks to address the ongoing debt conflict, mandating financial institutions to settle 85 per cent of all outstanding invoices by December 31, 2024.