N2.2trn Service value: NCC orders telcos to disconnect 9 banks over USSD debts

Share

Tweet

Share

Share

Email

Comments

BY BONNY AMADI

• As N2.2trn value in 252.06million transactions recorded in 2024.

With a higher projected value of Unstructured Supplementary Services Data (USSD) expected in 2024 from the N2.2 trillion recorded in 2024, nine banks are to be barred from the digital services as a result of unsettled debt to the Nigerian Telecommunications Commission (NCC).

The Nigerian Communications Commission (NCC) says it has ordered telecommunications companies to disconnect the Unstructured Supplementary Service Data (USSD) codes assigned to nine financial institutions due to unpaid debts.

Data from the CBN revealed that 252.06 million transactions worth N2.19 trillion were conducted via USSD between January and June 2024.

This was made known in a public notice signed by NCC’s Director of Public Affairs, Mr. Reuben Muoka, on Wednesday.

According to the com- mission, the affected banks must settle their outstanding debts by Jan. 27, 2025 or risk losing access to their USSD codes.

The NCC noted that the codes, which are essential for enabling mobile banking services, could be reassigned to other applicants if the debts remained unresolved.

The commission revealed that on Tuesday, nine out of 18 financial institutions had not complied with regulatory directives.

“While other banks have cleared their debts, the total amount initially owed by the financial institutions were reported to exceed N200 billion,” it said.

According to the NCC, some of the unpaid invoices have remained unpaid since 2020, indicating a prolonged financial dispute between the banks and telecom operators.

The notice read: “By the in- formation made available to the commission as at close of business on Jan. 14, 2025, out of a total of 18 financial institutions, nine institutions failed to comply significantly with the directives in the Second Joint Circular of the Central Bank of Nigeria and the commission.

“The circular is dated Dec. 20, 2024, and is for the settlement of outstanding invoices due to Mobile Network Operators (MNOs), some since 2020,” it said.

The NCC noted that the banks’ failure to comply with the CBNNCC joint circular also meant that they are unable to meet the good standing requirements for the renewal of the USSD codes assigned to them by the commission.