NCC and Telcos Enforce USSD Debt Deadline as Defaulting Banks Scramble to Comply

The Nigerian Communications Commission (NCC) and telecommunications companies have ruled out any extension of the deadline for Nigerian banks to settle their outstanding Unstructured Supplementary Service Data (USSD) debts, which elapsed on Monday. This decision has left defaulting banks scrambling to comply before the close of business.

The Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), Gbenga Adebayo, made this known on Monday, stressing the urgency of the matter.

It will be recalled that on January 15, 2025, the NCC issued a stern warning to nine Nigerian banks, instructing them to clear their debts by January 27, 2025, or risk losing access to USSD services. These services are critical to millions of Nigerians who rely on them for banking transactions without internet access.

By last Friday, the number of banks in arrears had reduced from nine to seven, as confirmed by telecom operators. Of these, only two had made payments by the weekend. By Monday, another bank indicated its intention to settle, leaving five or six banks still in default.

“One of these seven banks has reached out to confirm their intention to settle the debt today (Monday), which will leave about five or six banks still outstanding,” Adebayo disclosed.

He further elaborated on the phased approach to debt settlement. “This is just the first phase of the directive. We hope that banks that have complied in this phase will continue to meet their obligations in subsequent ones,” he said.

The second phase, scheduled for July 2, 2025, will require banks to complete the full payment of all pre-API invoices, while the third phase mandates the settlement of 85 percent of post-API invoices by December 31, 2025.

Adebayo warned of serious repercussions for non-compliance. “When it comes to the second and third phases, we expect full compliance,” he stated. “Failure to meet these deadlines will have consequences, and we are keen to avoid any disruption of services.”

The NCC and telecommunications companies have emphasized that the directive is part of broader efforts to ensure the financial accountability of service users while safeguarding the continued availability of USSD services for millions of Nigerians. The move underscores the importance of collaboration between the financial and telecommunications sectors to ensure seamless service delivery and sustainable operations.

For now, all eyes are on the defaulting banks as the sector anticipates their next move to comply with the NCC’s mandate and avoid potential disconnection from critical USSD services.

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