CBN, NCC Direct Banks, Telcos to Settle N250bn USSD Debt

The Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) have issued a joint directive requiring Deposit Money Banks (DMBs) and Mobile Network Operators (MNOs) to resolve the long-standing N250 billion USSD debt issue.

This directive, outlined in a 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 signed by Oladimeji Taiwo, the Ag Director of the Payments System Management Department at the CBN, and Chizua Whyte, the Head of Legal and Regulatory Services at the NCC.

The circular, dated December 20, 2024, expressed concern over the unresolved dispute between DMBs and MNOs, arising from the use of MNOs’ USSD platforms for banking services. Despite several attempts to mediate, the issue has persisted, prompting the regulators to step in.

The new directive mandates the payment of 60 percent of all pre-API (Application Programming Interface) invoices by January 2, 2025. DMBs and MNOs are allowed to settle the debt either in full or through installments, with the final payment due by July 2, 2025.

For post-API debts—those incurred after the introduction of APIs in February 2022—banks are expected to pay 85 percent of all outstanding invoices by December 31, 2024. Additionally, 85 percent of all future invoices must be cleared within one month of issuance.

The regulators have also ordered the cessation of all litigation related to the USSD debt, with both the CBN and NCC warning that non-compliance would result in sanctions. 

The circular emphasized, "Failure to comply with the terms outlined in this directive will attract necessary sanctions, ensuring that both DMBs and MNOs uphold their obligations."

The joint statement added that end-user billing for USSD services will only be activated for DMBs and MNOs that adhere to the payment terms, with public awareness campaigns to follow. Furthermore, the CBN and NCC have introduced a "10-seconds-rule" to prevent billing for sessions that last less than 10 seconds.