business
N200bn USSD Debt: NCC to Reveal Defaulting Banks This Week

The Nigerian Communications Commission (NCC) is set to publicly disclose the names of 18 banks this week that have failed to pay off their debts for using the Unstructured Supplementary Service Data (USSD) platforms provided by Mobile Network Operators (MNOs).
These banks owe a collective sum of N200 billion, and the telecom regulator is preparing to take measures, including suspending USSD services to the defaulters.
Last year Business Times Newspapers reported that FG gives banks, telcos six-month ultimatum on N250bn USSD debt –
According to reliable industry sources, only four banks have met the payment requirements outlined in a joint directive from the Central Bank of Nigeria (CBN) and the NCC in December 2023. The directive mandated that by January 2, 2025, 60 percent of pre-API (Application Programming Interface) invoices be settled, with payment plans agreed upon by the banks and telecom companies. However, the remaining banks have yet to meet their payment obligations.
According to reliable industry sources, only four banks have met the payment requirements outlined in a joint directive from the Central Bank of Nigeria (CBN) and the NCC in December 2023. The directive mandated that by January 2, 2025, 60 percent of pre-API (Application Programming Interface) invoices be settled, with payment plans agreed upon by the banks and telecom companies. However, the remaining banks have yet to meet their payment obligations.
Pre-API invoices refer to outstanding payments for USSD services incurred before the introduction of APIs in February 2022. Before the implementation of APIs, USSD transactions were managed using older, less standardized methods, which sometimes caused billing and reconciliation issues between banks and telecom companies.
If the service suspension takes effect, it will significantly impact Nigerians who rely on USSD for banking transactions, particularly those without access to the internet. The NCC’s upcoming public statement will guide affected subscribers on how to switch banks, ensuring that they can continue accessing banking services without disruption.
Also Read:
- FG gives banks, telcos six-month ultimatum on N250bn USSD debt
- Tinubu Meets FBN Holdings Chairman Otedola in Abu Dhabi Amid Legal Dispute
This move by the NCC is part of an ongoing effort to resolve a long-standing debt dispute between banks and telecom companies, which has been contentious for years. Telecom operators have raised concerns about the financial strain caused by unpaid debts, threatening to withdraw USSD services entirely.
Data from the CBN’s electronic payment statistics show that between January and June 2024, 252.06 million USSD transactions totaling N2.19 trillion were processed. This represents a significant increase compared to 2023’s full-year data, which recorded N4.84 trillion in USSD transactions across 630.6 million transactions.
Originally designed by telecom companies for managing airtime and subscription services, USSD has been widely adopted by the banking sector due to its ability to function without an internet connection.
In November, the Chairman of the Association of Licensed Telecom Operators of Nigeria, Gbenga Adebayo, reported that smaller banks were beginning to settle their debts, but tier-one banks—responsible for the majority of the debt—had not made substantial payments. He also stated that the telecom companies were waiting for intervention from regulators, including the CBN and NCC, to resolve the matter.
In October, Ejike Onyeaso, Director at Adaba Consult, highlighted dissatisfaction among telecom companies regarding the inadequate payments from banks for leased lines used in USSD services. He emphasized that since banks profit from these services, they should fairly compensate telecom providers. Onyeaso also warned that if telecom companies follow through on their threats to suspend USSD services, it could disrupt banking operations.
Note:
- Unstructured Supplementary Service Data (USSD) is a technology that enables users to perform banking transactions on their mobile phones without the need for an internet connection. It is commonly used for services such as checking account balances, transferring money, and paying bills.
- Banks rely on USSD services provided by telecom companies to offer these banking functionalities to their customers. However, many banks have failed to pay the telecom companies for the use of these services. As a result, the accumulated unpaid debt has reached a substantial sum of N200 billion.
- The telecom companies are facing financial losses due to the non-payment for their services. This financial strain could potentially affect their ability to sustain and enhance the USSD services that millions of Nigerians depend on for banking transactions.
- The Nigerian Communications Commission (NCC) and the Central Bank of Nigeria (CBN) have been working to compel the banks to settle their outstanding debts. In December 2023, they issued a directive requiring banks to pay 60% of the outstanding debt by January 2, 2025. However, as of now, only four banks have complied, while 18 banks remain in default.
- The NCC intends to publicly disclose the names of the banks that have not paid their debts as a means of pressuring them to fulfill their obligations. By revealing the defaulters, the NCC aims to encourage the banks to settle their dues promptly and prevent disruption of USSD services that their customers rely on.