The Nigerian Communications Commission (NCC) and the Central Bank of Nigeria (CBN) have jointly mandated Deposit Money Banks (DMBs) and Mobile Network Operators (MNOs) to resolve a ₦250 billion dispute over Unstructured Supplementary Service Data (USSD) services within six months. The resolution process emphasizes the use of alternative dispute resolution mechanisms to address the protracted disagreement.
The directive, contained in a joint circular 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,” outlines specific steps for compliance. DMBs are required to pay 60 percent of all outstanding pre-API invoices as full and final settlement, with payment plans agreed upon by January 2, 2025. Instalment payments must be completed by July 2, 2025.
Additionally, DMBs must settle 85 percent of outstanding post-API invoices by December 31, 2025, and all future post-API invoices must be paid within one month of issuance. Both parties have been directed to immediately suspend any ongoing legal actions related to the USSD debt issue.
To improve billing transparency, MNOs are required to adopt a “10-second rule” that exempts sessions lasting less than 10 seconds from charges. DMBs using prepaid billing systems may transition to the End-User Billing (EUB) system upon completing regulatory requirements. The transition to EUB will be activated only for compliant parties, ensuring adherence to the directives.
The circular, 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, emphasizes that non-compliance will attract sanctions. Public awareness campaigns are also planned to educate telecom subscribers on the transition to EUB, aiming to enhance transparency and improve customer experience in the financial and telecommunications sectors.
This collaborative approach by the NCC and CBN is expected to resolve the long-standing debt issue, foster better cooperation between banks and telecom operators, and safeguard consumer interests in Nigeria’s digital economy.