NCC May Suspend USSD Services Over N250bn Debt Dispute

The Nigerian Communications Commission (NCC) is reportedly considering suspending unstructured supplementary service data (USSD) services as a response to the unresolved debt dispute between telecommunications operators and banks. The debt, which has reached N250 billion, continues to be a contentious issue, with sources indicating that the NCC may also release a list of defaulting banks to the public.

If implemented, the suspension would halt USSD channels for banking transactions, affecting millions of customers who rely on the service for seamless banking operations. Although no official announcement has been made, there are indications that the list of indebted banks could be published within the week.

The move comes as the federal government seeks solutions to long-standing industry challenges, including the growing financial strain on telecommunications operators who have been advocating for a tariff increase.

USSD Debt Escalates by Over 680% Since 2019

The dispute over USSD charges has worsened significantly since 2019, with the debt rising by 681.2 percent over the period. In 2021, telcos threatened to suspend USSD services due to a N42 billion debt, a figure that had grown from N32 billion in 2019. The intervention of Isa Pantami, then Minister of Communications and Digital Economy, temporarily resolved the issue, leading to a new charge of N6.98 per USSD transaction.

Despite these measures, the debt has continued to spiral. By November 2022, it had reached N80 billion. By mid-2023, the figure rose to N200 billion and eventually hit N250 billion by October 2024, according to Gbolahan Awonuga, Executive Secretary of the Association of Licensed Telecommunications Operators of Nigeria (ALTON).

Failed Resolutions and Potential Public Notice

The NCC, in collaboration with the Central Bank of Nigeria (CBN) and other stakeholders, has been attempting to mediate the conflict. In December 2024, both regulators directed banks to settle 85 percent of all outstanding invoices by the end of the year. However, reports suggest that as of December 31, 2024, only four banks had complied, leaving 18 still owing.

In light of this, the NCC is reportedly planning to issue a public notice identifying defaulting banks. This notice, addressed to customers, is intended to inform them of the impending suspension of USSD services and urge them to explore alternative transaction options. The notice is expected to give banks and customers a two-week window to settle debts and make necessary adjustments before the suspension is enforced.

The USSD service remains a critical infrastructure for banking and financial inclusion in Nigeria, and the potential suspension could disrupt millions of daily transactions.