• Thu. Feb 13th, 2025

NCC Gave Approval To MNOs To Disconnect USSD Services of Nine Banks Over N200bn Debt

ByHybridNewsNg

Jan 16, 2025

The Nigerian Communications Commission (NCC) has approved telecommunications operators to disconnect the Unstructured Supplementary Service Data (USSD) codes of nine financial institutions due to their failure to settle a N200 billion debt accumulated since 2019.

The affected banks include 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. The NCC stated that the disconnection must take effect by January 27, 2025, if the banks fail to resolve their outstanding obligations.

According to a notice signed by the NCC’s Director of Public Affairs, Reuben Muoka, the directive follows the banks’ inability to comply with a joint mandate from the Central Bank of Nigeria (CBN) and the NCC issued on December 20, 2024. The notice highlights that some of the debts date back to 2020, with no significant compliance by the banks to settle the amounts owed to mobile network operators (MNOs).

The NCC warned that this action could lead to significant disruptions in mobile banking services for consumers, particularly those relying on USSD codes such as 770, 919, and 822 for transactions without internet access. The regulator also cautioned that unresolved debts may result in the reassignment of the affected USSD codes to other applicants.

“By the information made available to the commission as of the close of business on Tuesday, January 14, 2025, a total of nine financial institutions have failed to comply significantly with the directives in the Second Joint Circular of the Central Bank of Nigeria and the commission,” part of the notice read.

The regulator further stated that the failure of the banks to meet the good standing requirements for the renewal of their USSD codes could result in service disruptions for customers. It also emphasized its commitment to consumer protection by notifying the public of the potential impact on banking services.

This development highlights ongoing tensions between telecom operators and financial institutions over unpaid USSD-related debts, a challenge that has persisted for years and remains a contentious issue in Nigeria’s financial and telecommunications sectors.

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