By Blessing Emmanuel, Abuja
Following unending efforts by regulators to resolve the protracted N250bn Unstructured Supplementary Service Data (USSD) debt dispute between telecom companies and financial institutions, the Nigerian Communications Commission (NCC) has authorised telecommunications companies to disconnect USSD services of nine financial institutions.
NewsDirect reports that the telecom companies at various times have complained of the harsh economic conditions affecting the profitability and sustenance of services highlighting vandalism, unsettled debts, high foreign exchange, electricity & fuel consumption costs, amongst others.
This decision by the NCC comes amid mounting pressure from telecom operators who had earlier called for a clear payment framework to address the debt, which has strained relationships between the banking and telecom sectors.
Worthy of note is that between January – June 2024 Nigerians performed transactions worth N2trn highlighting that a significant number of persons still utilise the service despite the surge in Banking app transactions.
In a statement made by NCC’s Director of Public Affairs, Reuben Muoka, the commission stated that the move aligns with efforts to enforce regulatory compliance and protect telecommunications service providers.
The disconnection is set to take effect from Monday, January 27, 2025, unless the banks clear their outstanding invoices.
This decision follows a failure by the affected banks to comply with a directive from the NCC and the Central Bank of Nigeria (CBN) mandating the settlement of debts owed to Mobile Network Operators (MNOs) for USSD services.
The directive, issued in December 2024, required financial institutions to meet regulatory “Good Standing” requirements to retain access to USSD services.
The affected banks and their USSD codes include: Fidelity Bank Plc (770), First City Monument Bank (329), Jaiz Bank Plc (773), Polaris Bank Limited (833), Sterling Bank Limited (822), United Bank for Africa Plc (919), Unity Bank Plc (7799), Wema Bank Plc (945), Zenith Bank Plc (966).
The NCC has issued notice to customers of these banks to expect disruptions in USSD services, used for mobile transactions, airtime purchases, and other banking operations, if debts remain unpaid by the deadline.
The Commission further noted that the impacted USSD codes might be reassigned to other applicants if the banks fail to resolve their obligations.
Bank customers are encouraged to explore alternative channels for transactions to avoid disruptions.