FG Issues Six-Month Ultimatum On N250bn USSD Debt Resolution

The Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) have directed deposit money banks (DMBs) and mobile network operators (MNOs) to resolve the protracted N250 billion Unstructured Supplementary Service Data (USSD) debt within six months.

A joint circular dated December 20, 2024, signed by Oladimeji Taiwo, acting director of payments system management at the CBN, and Chizua Whyte, head of legal and regulatory services at the NCC, detailed a structured payment plan and new operational guidelines for USSD services.

Under the directive, 60% of debts incurred before February 2022 must be paid as full and final settlement. Payment agreements must be finalized by January 2, 2025, with full settlement due by July 2, 2025. For debts incurred post-February 2022, banks must settle 85% of outstanding invoices by December 31, 2024, and ensure timely settlement of future invoices.

The regulators also mandated the discontinuation of ongoing litigation related to USSD debts, warning of strict sanctions for non-compliance. The circular emphasized the transition to end-user billing (EUB) for USSD services, contingent on adherence to the outlined payment terms. Pending this transition, operators must implement a “10-second rule,” ensuring sessions under 10 seconds are not billed.

USSD services are critical for financial inclusion in Nigeria, particularly in rural areas with limited smartphone penetration and internet access. Banks heavily rely on USSD for mobile banking, airtime top-ups, and bill payments.

The debt crisis, which has strained relations between banks and telecom operators, has persisted for years. Smaller banks have reportedly begun repayments in installments, while tier-one lenders, responsible for most of the debt, have yet to make significant payments. The measures aim to stabilize the financial and telecommunications sectors while ensuring continued access to USSD services for Nigerians.