Deposit Money Banks and Mobile Network Operators have received a definitive mandate from the Nigerian Communications Commission and the Central Bank of Nigeria to settle the long-running N250 billion Unstructured Supplementary Service Data debt dispute.
Oladimeji Taiwo, the acting director of payments system management at the CBN, and Chizua Whyte, the head of legal and regulatory services at the NCC, signed the directive, which was contained in a joint circular dated December 20, 2024.
The Punch reported that the document included new operational instructions for USSD services as well as a structured payment plan for debt settlement.
The directive stipulates that a full and final settlement of 60% of all obligations incurred prior to the deployment of Application Programming Interfaces in February 2022 must be made.
Complete settlement is required on July 2, 2025, and payment agreements, whether in instalments or lump sums, must be finalized by January 2, 2025.
The CBN and NCC required banks to pay 85% of all outstanding invoices by December 31, 2024, for debts originating after February 2022. They also required banks to make sure that 85% of future invoices are paid within a month of their issuance.
Additionally, the regulators warned that non-compliance would result in severe penalties and ordered both parties to stop all ongoing litigation pertaining to the USSD debt issue.
The decision was made in response to growing pressure from telecom operators, who had previously demanded a transparent payment plan to settle the debt, which had damaged ties between the banking and telecom industries.
The regulators also stressed that only banks and telcos that fulfill the specified payment requirements will be subject to the shift to end-user paying for USSD services.
TimesNow.com.ng reported that the Association of Telecommunications Companies of Nigeria (ALTON) has asked the Nigerian Communications Commission (NCC) and other stakeholders to implement practical solutions to resolve the N250 billion debt by commercial banks to telecom firms for Unstructured Supplementary Service Data (USSD) service.
ATCON president Tony Emoekpere emphasised the need for solutions and warned that the debt threatens the progress of financial inclusion in Nigeria.
He stated that USSD is critical for Nigeria’s drive for financial inclusion, especially in the rural areas with limited smartphone and internet access.
Source: TimesNow.com.ng
