‘Customers’ USSD access intact as banks’ settle USSD debt’

ALMOST all e-nine banks earmarked for disconnection from Unstructured Supplementary Service Data (USSD) service over a N160 billion debt have reportedly made good progress in terms of repayment, guarantees that none of them will lose access to USSD services.

USSD is a communication protocol that allows users to send short messages and commands to their mobile network operator’s computers. USSD is also known as “feature codes” or “quick codes”.

USSD is a crucial payment gateway for many Nigerians, and its disconnection would have cut off many from essential banking services.

In a notice on January 15, the Nigerian Communications Commission (NCC) revealed that it would cut off the USSD access of nine banks over their inability to settle their USSD accumulated since 2019 by January 27. However, these banks have rushed to de-escalate the issue, ensuring that their customers will continue to use USSD for financial services.

Over the weekend, Mr Gbenga Adebayo, chairman, Association of Licensed Telecommunications Operators of Nigeria (ALTON), disclosed that, “The matter has been de-escalated. Money has been paid, and we are making progress thanks to the regulators.”

Earlier in the week, Mr Karl Toriola, Chief Executive o\Officer,  MTN Nigeria, noted that telcos and banks have resolved their differences. “The USSD debt issue is resolved, thanks to the masterstroke by both the Central Bank of Nigeria and NCC.”

Recently, it was reported that five of the nine banks had made some form of payment before the NCC’s deadline of January 27. The nine banks that would have been affected by the commission’s disconnection move included 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), and Zenith Bank Plc (966).

Commercial banks have been unable to settle a payment dispute with telcos over USSD infrastructure since 2019, prompting the CBN and the NCC to order banks to pay a chunk of the USSD debt owed to telcos.

In a December 20 memo, the CBN and the NCC gave banks a December 31, 2024, deadline to pay 85 percent of all outstanding invoices (from February 2022). According to the NCC, nine of the 18 banks indebted to the telcos cleared over 90 percent of their debt by the deadline.

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