In a dramatic turn of events, five out of nine Nigerian banks have cleared their staggering N160 billion USSD debt just before the Nigerian Communications Commission (NCC) disconnection deadline of 27 January 2025. This development comes after years of mounting pressure from telecom operators and the looming threat of service disruption for millions of Nigerians who rely on USSD for essential banking services.
The Backstory: A Debt Years in the Making
Since 2019, Nigerian banks have failed to remit payments for USSD services used for financial transactions, leading to a massive debt accumulation. USSD (Unstructured Supplementary Service Data) has become a lifeline for millions of Nigerians, enabling them to perform banking transactions, check balances, and transfer funds without needing internet access. However, the failure of banks to pay for these services has strained relationships with telecom operators, who have been bearing the financial burden.
The NCC, acting as a regulator, stepped in to address the issue, setting a hard deadline of 27 January 2025 for banks to clear their debts or face disconnection. The nine banks implicated in this saga include some of Nigeria’s biggest names:
Fidelity Bank Plc
First City Monument Bank Plc
Jaiz Bank Plc
Polaris Bank Limited
Sterling Bank Limited
United Bank for Africa Plc
Unity Bank Plc
Wema Bank Plc
Zenith Bank Plc
The Race Against Time
With the disconnection deadline looming, five of these banks have stepped up to clear their debts, totaling N160 billion. While the NCC has confirmed the payments, it has not disclosed the specific names of the banks that have settled their dues. This move has provided some relief to telecom operators and customers alike, but the fate of the remaining four banks remains uncertain.
What This Means for Nigerian Consumers
The NCC has reiterated its commitment to consumer protection, warning that customers of non-compliant banks may experience disruptions in USSD services starting 27 January 2025. For many Nigerians, especially those in rural areas with limited internet access, USSD is a critical tool for accessing banking services. Any disconnection could have far-reaching consequences, leaving millions unable to perform basic financial transactions.
This situation highlights the delicate balance between financial institutions, telecom operators, and regulatory bodies. It also underscores the importance of USSD services in Nigeria’s financial ecosystem. As the country continues to push for financial inclusion, ensuring the seamless operation of these services is non-negotiable
This is truly encouraging. Other banks should follow suit to get this done to reduce our debt.