The Nigerian Communications Commission and telecom companies have firmly ruled out any extension to the deadline for banks to clear their Unstructured Supplementary Service Data debts, leaving defaulting lenders in a race against time to settle by Monday’s close of business.
Initially, nine banks owed arrears, but by Friday, the number of defaulters had reduced to seven, with only two of them having made payments.
By the end of Monday, one more bank confirmed its intention to settle, leaving six banks still in debt.
This development follows a warning issued by the telecom regulator on January 15, 2025, demanding that the nine banks settle their debts by January 27, 2025, or risk losing access to their USSD codes, a critical service enabling millions of Nigerians to carry out banking transactions without internet access.
The Chairman of the Association of Licensed Telecommunications Operators of Nigeria, Gbenga Adebayo, confirmed the reduction in the number of defaulting banks, noting that only two had made their payments as of Friday.
“One of these seven has reached out to confirm that they will settle their debt today (Monday), which will leave about five or six banks still outstanding,” Adebayo explained.
The ongoing enforcement is part of the initial phase of a structured payment plan outlined in a memo issued on December 20, 2024, by the NCC and the Central Bank of Nigeria
The plan requires banks to settle N250 billion in USSD debt in three phases, with clear deadlines for each.
The first phase mandates that banks pay 60% of all outstanding pre-API invoices by January 2, 2025.
Adebayo stressed the importance of meeting this deadline, warning that failure to do so could result in the disconnection of USSD services, a crucial channel for millions of Nigerians who rely on mobile banking.
“This is just the first phase of the directive. We hope that banks who have complied with this phase will continue to meet their obligations in subsequent ones,” he said.
The second phase will require banks to fully settle all pre-API invoices by July 2, 2025, while the third phase will see banks settle 85% of post-API invoices by December 31, 2025.
“For the second and third phases, we expect full compliance,” Adebayo remarked. “Non-compliance at any stage will have consequences, and we hope to avoid any disruption of services.”
When asked about the possibility of an extension, Adebayo was firm, saying that any decision to extend the deadline would require approval from both the NCC and the CBN.
“No, there will be no extension. If there is to be one, it would require joint approval from the NCC and CBN, but I doubt that either regulator would act without consulting the other,” he clarified.
Adebayo urged banks to comply to avoid disrupting mobile banking services, which millions of Nigerians depend on.
“It’s crucial for non-compliant banks to settle their debts to ensure we don’t disrupt the economy and the digital services subscribers depend on,” he added.
The Director of Public Affairs at the NCC, Reuben Mouka, also reiterated the importance of meeting today’s deadline, as outlined in the commission’s directive. “We have clearly stated in our publications that disconnection will occur if banks fail to meet the payment deadline,” Mouka emphasized. “It is now up to the telecom operators to decide whether or not to disconnect the services.”
