The Nigerian Communications Commission (NCC) has directed telecommunications companies to disconnect the Unstructured Supplementary Service Data (USSD) services of nine financial institutions due to outstanding debts. In a notice signed by NCC Director of Public Affairs, Reuben Muoka, the commission warned that the affected banks must settle their obligations by January 27, 2025, or risk losing access to their USSD codes, which could be reassigned to other applicants. The regulator emphasized that this action follows prolonged non-compliance despite previous directives.
The notice disclosed that nine out of 18 financial institutions had failed to settle their USSD-related debts, initially reported to exceed N200 billion. While the current outstanding amount was not specified, the NCC noted that some invoices have remained unpaid since 2020. The affected banks include Fidelity Bank Plc, First City Monument Bank, Jaiz Bank Plc, Polaris Bank Limited, Sterling Bank Limited, United Bank for Africa Plc, Unity Bank Plc, Wema Bank Plc, and Zenith Bank Plc. The regulator stressed that failure to comply with the Central Bank of Nigeria (CBN) and NCC’s joint directive also disqualifies the banks from renewing their USSD code assignments.
This development underscores ongoing disputes between telecom operators and financial institutions over USSD charges, which have persisted for years. The NCC warned that customers of the affected banks may experience service disruptions if the issue remains unresolved. Despite these challenges, USSD services continue to play a critical role in Nigeria’s financial sector, facilitating transactions worth trillions of naira annually. Originally designed for basic mobile services, USSD has evolved into an essential banking tool, particularly for users without internet access.