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 settle the outstanding N250 billion USSD debt within six months, failing which they face severe penalties.
In a joint circular dated December 20, 2024, the regulators outlined a structured payment plan requiring banks to pay 60% of debts incurred before February 2022 as full and final settlement by July 2, 2025. For debts incurred after February 2022, banks must pay 85% of outstanding invoices by December 31, 2024, and ensure 85% of future invoices are settled within a month.
The directive also mandates the discontinuation of all ongoing litigation related to the USSD debt and emphasizes the transition to end-user billing (EUB) for USSD services, contingent upon the banks meeting the payment obligations.
This move comes amidst mounting pressure from telecom operators who have been demanding a clear payment framework to address the debt, which has strained relations between the banking and telecom sectors.
The CBN and NCC reiterated their commitment to resolving the debt impasse, stating that these measures are aimed at fostering stability in both the financial and telecommunications sectors while ensuring the continued availability of USSD services for Nigerians.
USSD services are crucial for financial inclusion in Nigeria, particularly in rural areas with limited smartphone penetration and internet access. However, the debt crisis has persisted for years, with telecom operators threatening service disruptions. While smaller banks have reportedly begun repayment, tier-one lenders, responsible for the majority of the debt, have yet to make substantial payments.