N250bn USSD Debt Dispute To Be Resolved

N250bn USSD Debt Dispute To Be Resolved

The Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) have instructed Deposit Money Banks (DMBs) and Mobile Network Operators (MNOs) to resolve the protracted N250 billion USSD debt dispute…READ MORE…

An exclusive report obtained by our correspondent revealed the directive, 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,” issued on December 20, 2024. The document was signed by Oladimeji Taiwo, Acting Director of the Payments System Management Department at the CBN, and Chizua Whyte, Head of Legal and Regulatory Services at the NCC.

This initiative aligns with a recent report from The PUNCH, highlighting telecom operators’ requests for a structured payment plan from regulatory bodies to alleviate the escalating debt that has raised significant concerns in both industries.

The circular outlined specific measures for settling the outstanding debt, noting ongoing issues regarding the use of MNOs’ USSD platforms for banking services after failed attempts to resolve the matter.

The CBN and NCC mandated that 60% of all pre-API invoices be paid as a full and final settlement. DMBs and MNOs must agree on payment plans—either as a lump sum or in installments—by January 2, 2025, with installment payments to be completed by July 2, 2025.

For post-API debts, which originated from transactions conducted after the introduction of Application Programming Interfaces in February 2022, DMBs are required to pay 85% of all outstanding invoices by December 31, 2024. Furthermore, 85% of all future invoices must be cleared within one month of issuance.

Both the CBN and NCC called for the immediate cessation of all legal actions concerning the USSD debt. They warned that failure to adhere to these directives would lead to penalties from the relevant regulatory authorities.

The circular stated, “Accordingly, the CBN and NCC direct DMBs and MNOs as follows: 1. Pay 60% of all pre-API invoices as full and final settlement. Payment plans (lump sum or installments) must be agreed upon between a DMB and MNO by January 2, 2025, with full payment due by July 2, 2025. 2. DMBs must pay 85% of all outstanding invoices issued after the introduction of APIs (February 2022) by December 31, 2024, and 85% of future invoices within one month of service.”

Additionally, both agencies stated that the transition to end-user billing would only take place for DMBs and MNOs that comply with these payment terms. They will also provide more guidance on public awareness initiatives related to this transition.

Until this transition is finalized, MNOs are required to adopt the “10-seconds rule” for USSD invoicing, meaning any session lasting less than ten seconds will not be charged.

The circular also allows DMBs with prepaid billing options to transition to end-user billing, provided they complete the necessary regulatory processes.

The CBN and NCC reiterated that non-compliance with these directives could lead to sanctions, emphasizing their commitment to resolving the dispute and maintaining stability within both sectors. The circular concluded, “Failure to comply with the terms outlined in this directive will result in necessary sanctions, ensuring that both DMBs and MNOs fulfill their obligations.

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