The Nigerian Communications Commission (NCC) and telecommunications companies have firmly ruled out any extension to the deadline for banks to settle their Unstructured Supplementary Service Data (USSD) debts, leaving defaulting lenders in a race to meet the Monday close-of-business deadline.
Initially, nine banks were behind on payments, but by Friday, the number had dropped to seven, according to telecom operators. Of these, only two lenders had made payments. By Monday, one more bank had expressed its intention to settle, leaving six still in arrears.
This situation stems from a January 15, 2025, directive issued by the NCC, warning the nine banks to clear their debts by January 27, 2025, or face disconnection from their USSD services—an essential tool for millions of Nigerians who rely on it for banking transactions without internet access.
The Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), Gbenga Adebayo, confirmed that. “As of Friday, the number of defaulting banks reduced to seven, and only two had made payments,” he said.
“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 added.
This enforcement is part of the first phase of a structured payment plan outlined in a December 20, 2024, memo jointly issued by the NCC and the Central Bank of Nigeria (CBN). The memo stipulates a three-phase obligation for banks to settle their N250bn USSD debt, with specific deadlines for each phase.
The first phase mandates banks to clear 60 percent of all outstanding pre-API invoices by January 2, 2025. Adebayo highlighted the importance of this phase. “Failure to meet this initial deadline could lead to the disconnection of USSD services, which are vital for millions of Nigerians who rely on mobile banking for everyday transactions,” he stated.
“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,” he added.
The second phase requires full payment of all pre-API invoices by July 2, 2025, while the third phase mandates the settlement of 85 percent of post-API invoices by December 31, 2025.
“When it comes to the second and third phases, we expect full compliance,” Adebayo said. “Non-compliance at any stage will have consequences, and we hope to avoid any disruption of services.”
When asked about the possibility of an extension to the deadline, Adebayo ruled it out. “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.
Adebayo also urged banks to comply to avoid disrupting mobile banking services. “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,” he noted.
Speaking with journalists, the Director of Public Affairs at the NCC, Reuben Mouka, reiterated that the January 27 deadline is final. “We have clearly stated in our publications that disconnection will occur if banks fail to meet the payment deadline,” Mouka said. “It is now up to the telecom operators to decide whether or not to disconnect the services.”
