The Nigerian Communications Commission (NCC) has instructed telecommunications companies to disconnect the Unstructured Supplementary Service Data (USSD) codes of no fewer than nine defaulting financial institutions. The action comes after the banks failed to repay a staggering N200 billion debt that it has accumulated since 2019.
The telecommunication regulatory body has set January 27, 2025, as the deadline for the disconnection to take effect, if the banks fail to repay their obligations.
Independent News Express reports that the financial institutions affected by the directive are Fidelity Bank Plc, First City Monument Bank, Jaiz Bank Plc, Polaris Bank Limited, Sterling Bank Limited, United Bank for Africa Plc, Unity Bank Plc, Wema Bank Plc and Zenith Bank Plc.
These banks owe significant amounts to the telecommunications operators, with some debts dating back to 2020. The announcement by the NCC, signed by its director of public relations, Ruben Muoka, underlines the urgency of the situation. insisting that the failure of the banks to comply with a joint directive from the Central Bank of Nigeria (CBN) and the NCC, necessitated the ultimatum.
The notice warns consumers that they may experience disruptions in access to USSD services, which are essential for mobile banking, if debts are not repaid. USSD codes like 770, 919 and 822 play a crucial role in providing banking services to customers without internet access. The NCC said that unpaid debts could leads to the reassignment of these codes to other applicants.
In the statement, the NCC said: “At the close of business on Tuesday, January 14, 2025, out of a total of 18 financial institutions, the nine institutions listed below failed to materially comply with the second joint guidance of the Central Bank of Nigeria and the Commission, dated 20 December 2024, on the settlement of unpaid bills due to Mobile Network Operators (MNO), some of which 2020.”
The regulator also noted that the failure of banks to comply with the joint CBN-NCC circular indicates their inability to meet the requirements of good standing necessary for the renewal of the USSD codes assigned to them. The NCC has reiterated its commitment to consumer protection, informing the public that they will no longer be able to access the USSD platforms of the affected financial institutions from January 27, 2025.
This development highlights current tensions. between telecom operators and financial institutions regarding unpaid debts related to USSD. This problem has been around for many years and continues to affect consumers and the banking industry.
