By Nkechi Eze
In a bid to avoid USSD service disruptions affecting millions, Nigerian banks have settled a significant portion of their outstanding debts to telecom firms.
Faced with a looming disconnection over a N160bn debt, banks have made significant strides in settling their dues, safeguarding USSD services for customers reliant on them.
In a January 15, 2024, the Nigerian Communications Commission (NCC) issues a warning that nine banks would be cut off from USSD services by January 27 if they failed to clear debts accumulated since 2019. However, the banks acted quickly to resolve the issue, averting service disruptions.
According to a report by Punch newspaper, the Chairman of the Association of Licensed Telecommunications Operators of Nigeria, Gbenga Adebayo, confirmed at a CEO forum in Lagos that the matter had been de-escalated.
“The matter has been de-escalated. Money has been paid, and we are making progress thanks to the regulators,” he said.
A total of nine banks, including Fidelity Bank, FCMB, Jaiz Bank, Polaris Bank, Sterling Bank, UBA, Unity Bank, Wema Bank, and Zenith Bank, were at risk of disconnection following the NCC’s directive.
The dispute began in 2019 when banks started incurring charges for using USSD services provided by telecom companies. However, many banks struggled to settle the charges, causing the debt to accumulate.
This enforcement is part of the first phase of a structured payment plan outlined in a December 20, 2024 memo from the NCC and the Central Bank of Nigeria.
The memo details a three-phase payment obligation for banks to settle the N250bn debt, with specific deadlines for each phase.
The first phase requires banks to settle 60 per cent of all outstanding pre-API invoices by January 2, 2025.
The second phase requires banks to settle all outstanding pre-API invoices by July 2, 2025, while the third phase mandates an 85% settlement of post-API invoices by December 31, 2025.
