The Nigerian Communications Commission (NCC) has taken a decisive step in the long-standing dispute between telecommunications companies and banks over unpaid fees for Unstructured Supplementary Service Data (USSD) services.
In a recent directive, the NCC ordered mobile network operators, including MTN, Airtel, Glo, and 9mobile, to disconnect USSD codes for nine banks that have failed to settle their outstanding debts. The affected banks are FCMB, Zenith Bank, Sterling Bank, Jaiz Bank, UBL, Polaris Bank, Unity Bank, Fidelity Bank, and Wema Bank.
The disconnection order comes after the banks were given an 11-day ultimatum to pay their debts or face the consequences. If the banks fail to comply, the NCC has warned that the USSD codes will be reassigned to other businesses after January 27, 2025.
This development has sparked concerns about the potential disruption of mobile banking services for millions of Nigerians who rely on USSD codes to access banking services. The USSD platform enables customers to perform various banking transactions, including balance inquiries, fund transfers, and bill payments, using their mobile phones.
The dispute between telcos and banks over USSD fees has been ongoing for several years. The telecommunications companies claim that the banks owe them approximately ₦120 billion in unpaid fees for USSD services, with some debts dating back to 2020.
Despite a joint directive issued by the NCC and the Central Bank of Nigeria (CBN) in December, which instructed the banks to settle their debts or agree to a repayment plan, the banks have allegedly failed to comply.
The NCC’s decision to order the disconnection of USSD codes for the affected banks marks a significant escalation in the dispute. It remains to be seen how the banks will respond to the ultimatum and whether a resolution can be reached before the deadline expires.
If this operation takes place, this could make things worse for everyone as Nigerians are used to checking for data balances and making transactions using the USSD happens.
