The Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) have issued a directive requiring banks to pay ₦212.5 billion, equivalent to 85% of a ₦250 billion debt owed to telecom operators for USSD services. According to a December 20 memo obtained by TechCabal, the payment deadline is December 31, 2024.
The debt, which has accumulated over several years, stems from banks’ resistance to collecting and remitting USSD fees. Since 2021, regulatory mandates required banks to handle these fees, but many have argued that USSD technology is outdated and the charges are unfair.
“If you want to charge ₦20 for the service, go ahead. But collect it yourself. Don’t come to us,” said Segun Agbaje, CEO of GTCO. The late Herbert Wigwe shared similar concerns, questioning how telecom operators determine USSD fees and predicting that the technology would soon become obsolete.
These unresolved issues have allowed the debt to grow, with telecom operators reporting an outstanding ₦250 billion as of November 2024. The CBN and NCC’s latest directive aims to enforce stricter compliance and payment timelines.
Under the new rules, banks must pay 85% of any new invoices within a month of receipt. By January 2, 2025, banks and telecom operators are required to agree on a payment plan to settle 60% of all outstanding invoices. Banks that fail to comply face potential sanctions, including fines, operational restrictions, and other regulatory measures.
To incentivize compliance, the NCC has proposed transitioning to End-User Billing (EUB), where customers, rather than banks, would pay directly for USSD services. However, this shift will only be available to banks that meet the payment milestones outlined in the directive.
