CBN, NCC issue 6-month deadline for banks, telcos on N250bn USSD debt
Onome Amuge
The Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC), have issued a final directive to Deposit Money Banks (DMBs) and Mobile Network Operators (MNOs) to reach a swift resolution to the longstanding N250 billion USSD debt dispute.
A joint circular, signed by Oladimeji Taiwo, the acting Director of Payments System Management at the Central Bank of Nigeria, and Chizua Whyte, Head of Legal and Regulatory Services at the Nigerian Communications Commission,dated December 20, 2024, presented a roadmap for clearing the N250 billion USSD debt, which included a structured payment plan, as well as new guidelines for the implementation of USSD services.
The directive stipulated that all debts incurred before the implementation of Application Programming Interfaces (APIs) in February 2022 must be settled at a rate of 60% of the total debt amount as a full and final settlement.
In addition, payment agreements, whether as lump sums or installments, must be finalised no later than January 2, 2025, with complete repayment of all outstanding amounts to be made by July 2, 2025
Debts that were incurred after February 2022, according to the directive issued by the CBN and NCC, must be paid at a rate of 85 percent of all outstanding invoices by December 31, 2024, with future invoices settled within one month from the date of issue.
The regulators mandated that both the DMBs and MNOs cease all ongoing litigation related to the USSD debt issue, warning that failure to comply with the new directive would be met with severe consequences and sanctions.
“In view of the foregoing, the CBN and NCC hereby direct that all DMBs and MNOs adhere strictly to the outlined payment terms to ensure final resolution of this matter. Failure to comply will result in sanctions,” the guideline stated.
The directive from the CBN and NCC arrived in response to mounting pressure from telecom operators, who had previously sought a clear and comprehensive payment framework for addressing the USSD debt, which had been a point of friction between the banking and telecom sectors.
In addition, the regulators pointed out the impending shift to end-user billing for USSD services, noting that the new billing structure would only be available to banks and telecom operators that meet the requirements of the outlined payment plan.
The circular further emphasised that banks currently using prepaid billing systems could apply for a migration to end-user billing (EUB), subject to regulatory approval.
The CBN and NCC also reaffirmed their dedication to resolving the longstanding USSD debt impasse and stated that the directives were formulated to achieve stability in both the financial and telecommunications sectors.