The Nigerian Communications Commission (NCC) and telecommunications companies have confirmed that there will be no extension for banks to settle their outstanding Unstructured Supplementary Service Data (USSD) debts, leaving the lenders scrambling to meet the deadline set for the close of business on Monday.
Initially, nine banks were in arrears, but by Friday, this number had dropped to seven. However, only two of these banks had made payments by that time. By Monday’s close, one more bank confirmed its intention to settle, leaving six banks still in arrears.
This decision follows a directive from the telecom regulator issued on January 15, 2025, which warned banks that failure to clear their debts by January 27, 2025, would result in the loss of access to USSD codes—a vital service that millions of Nigerians rely on to conduct banking transactions without internet access. Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), confirmed that while the number of defaulting banks had decreased to seven as of Friday, only two had cleared their debts.
“One of these seven has reached out to confirm that they will settle their debt today (Monday), which will leave about five or six banks still outstanding,” Adebayo said.
The current enforcement of this debt settlement is part of the first phase of a structured payment plan outlined in a December 20 memo from the NCC and the Central Bank of Nigeria (CBN). This memo stipulates a three-phase payment process to settle the N250 billion USSD debt, with strict deadlines for each phase.
The first phase, which required banks to settle 60 percent of all outstanding pre-API invoices by January 2, 2025, is crucial, as failure to meet this deadline would result in the disconnection of USSD services, a vital channel for millions of Nigerians engaged in mobile banking transactions. “This is just the first phase of the directive. We hope that banks who have complied with this phase will continue to meet their obligations in subsequent ones,” Adebayo explained.
The second phase of the payment plan, due by July 2, 2025, mandates banks to complete full payment of all pre-API invoices. The third phase, set for December 31, 2025, requires banks to settle 85 percent of post-API invoices.
Adebayo emphasized that full compliance is expected in both the second and third phases. “Non-compliance at any stage will have consequences, and we hope to avoid any disruption of services,” he added.
When asked about the possibility of an extension, Adebayo firmly ruled it out, stating that any such decision would require joint approval from both the NCC and the CBN. “No, there will be no extension. If there is to be one, it would require joint approval from the NCC and CBN, but I doubt that either regulator would act without consulting the other,” he explained.
The ATCON chairman urged banks to prioritize compliance to avoid disruption to mobile banking services, which millions of Nigerians rely on for daily transactions. “It’s crucial for non-compliant banks to settle their debts to ensure we don’t disrupt the economy and the digital services subscribers depend on,” Adebayo stressed.
Reuben Mouka, Director of Public Affairs at the NCC, reiterated that the deadline remains in effect as outlined in the commission’s January 15 directive.