The Central Bank of Nigeria and the Nigerian Communications Commission have issued a directive to Deposit Money Banks and Mobile Network Operators to resolve the longstanding USSD debt issue, totaling N250 billion.
The directive, contained in a joint circular titled “2nd Joint Circular of the Central Bank of Nigeria and the Nigerian Communications Commission on the Resolution of the USSD Debt Issue Between Deposit Money Banks and Mobile Network Operators,” was obtained on Monday.
This development comes as telecom operators called on regulators to implement a structured repayment framework to address the growing debt, which has raised significant concerns within the telecommunications and banking sectors.
Dated December 20, 2024, the circular was signed by the Acting Director of the CBN’s Payments System Management Department, Oladimeji Taiwo, and the Head of Legal and Regulatory Services at the NCC, Chizua Whyte.
It outlined measures for resolving the dispute, including clear payment terms for settling debts incurred before and after the implementation of Application Programming Interfaces in February 2022.
The circular expressed concern over the unresolved dispute between DMBs and MNOs regarding the use of USSD platforms for banking services, despite multiple attempts to address the issue.
To resolve this, the regulators mandated that DMBs settle 60% of all pre-API invoices as full and final payment. Payment arrangements, either as a lump sum or installments, must be agreed upon by January 2, 2025, with installment plans fully completed by July 2, 2025.
For post-API debts, the circular instructed DMBs to clear 85% of all outstanding invoices by December 31, 2024, and to pay the same percentage of future invoices within one month of issuance.
The CBN and NCC further directed the discontinuation of any ongoing litigation related to the USSD debt and warned that failure to adhere to these directives would result in sanctions.
“In view of the foregoing, the CBN and the NCC hereby direct DMBs and MNOs as follows: 1. That 60 per cent of all pre-API invoices must be paid as full and final settlement. Payment plans (lump sum or installments) must be agreed upon between a concerned DMB and MNO by January 2, 2025. Installments must be based on equal monthly payments, with full payment due by July 2, 2025.
“DMBs must pay 85 per cent of all outstanding invoices issued after the implementation of APIs (i.e., February 2022) by December 31, 2024. Similarly, 85 per cent of future invoices must be liquidated within one month of service,” the circular stated.
The directive also emphasized that only compliant DMBs and MNOs would transition to end-user billing and that further guidance on public awareness for this transition would be provided.
Pending the transition, MNOs are required to adopt the “10-seconds rule” for billing USSD sessions, where sessions lasting less than 10 seconds are non-billable.
Additionally, DMBs currently using prepaid billing can migrate to EUB after meeting regulatory requirements.
The circular concluded with a stern warning of sanctions for non-compliance, reinforcing the regulators’ resolve to bring stability to the sectors.
“Failure to comply with the terms outlined in this directive will attract necessary sanctions, ensuring that both DMBs and MNOs uphold their obligations,” the circular warned.
