Nigerians Brace For Disruptions As NCC Moves To Name 18 Defaulting Banks

Nigerians Brace For Disruptions As NCC Moves To Name 18 Defaulting Banks

The Nigerian Communications Commission (NCC) is gearing up to publicly identify 18 banks that have failed to clear a staggering ₦200 billion debt owed for using Mobile Network Operators’ (MNOs) USSD platforms. This decisive move…Nigerians Brace For Disruptions As NCC Moves To Name 18 Defaulting Banks

by the telecom regulator could result in the suspension of USSD services for these defaulting banks. Industry insiders revealed that while four banks have complied with a joint directive issued by the Central Bank of Nigeria (CBN) and the NCC, the others have yet to meet payment requirements.

Unpaid Debts: A Closer Look

• What Are Pre-API Invoices?
  These are unpaid bills accumulated before the introduction of Application Programming Interfaces (APIs) in February 2022. APIs streamlined USSD transactions, reducing billing disputes.
• What’s at Stake?
  If the debts remain unsettled, USSD services might be suspended in two weeks, potentially disrupting banking transactions for millions of Nigerians who depend on the service, especially those without internet access.

Impact of USSD Services

USSD technology, initially developed for telecom services like airtime purchases, has become vital for financial transactions. In the first half of 2024 alone, over 252 million USSD transactions worth ₦2.19 trillion were recorded.

Telecom companies have raised concerns about the unpaid debts, warning that the sustainability of USSD services is at risk. Smaller banks have begun repayments, but major lenders—responsible for the bulk of the debt—have been slow to act.

What Comes Next?

In its upcoming public statement, the NCC plans to guide affected customers on switching to other banks, ensuring uninterrupted access to banking services.

Expert Opinion:
Gbenga Adebayo, Chairman of the Association of Licensed Telecom Operators of Nigeria, emphasized the need for regulatory intervention to resolve the impasse. He warned that prolonged delays could disrupt critical banking operations.

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