The Nigerian Communications Commission (NCC) has issued a directive authorizing telecommunications companies to disconnect the Unstructured Supplementary Service Data (USSD) codes of nine financial institutions due to outstanding debts.
In a public notice signed by its Director of Public Affairs, Reuben Muoka, and released on Tuesday, the NCC stated that the affected banks must clear their financial obligations by January 27, 2025, to retain access to their USSD codes.
The commission warned that failure to comply could result in the reassignment of these codes to other applicants.
The USSD platform is vital for mobile banking services, allowing users to perform financial transactions without an Internet connection. According to the NCC, these codes are at risk of being deactivated if the debts remain unpaid, potentially disrupting banking services for millions of consumers.
As of Tuesday, January 14, 2025, nine out of 18 financial institutions had not complied with a December 20, 2024 directive issued in a joint circular by the Central Bank of Nigeria (CBN) and the NCC. The regulator disclosed that some of these debts have been outstanding since 2020.
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Part of the notice read, “By the information made available to the commission as at close of business on Tuesday, 14th January 2025, of a total of 18 financial institutions, the nine institutions listed below have failed to comply significantly with the directives in the Second Joint Circular of the Central Bank of Nigeria and the commission dated December 20, 2024, for the settlement of outstanding invoices due to MNOS, some since 2020.”
The regulator noted that banks’ failure to comply with the CBN-NCC joint circular also means that they are unable to meet the good standing requirements for the renewal of the USSD codes assigned to them by the commission.
It added, “In fulfilment of its consumer protection mandate, the commission wishes to inform consumers that they may be unable to access the USSD platform of the affected financial institutions from January 27, 2025.”
The affected financial institutions 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 affected USSD codes include 770, 919, and 822, among others.
The NCC emphasised that the financial institutions had been duly notified of the need for immediate compliance and warned that consumers may face service disruptions if the issues remain unresolved.
This development highlights ongoing tensions between telecommunications companies and financial institutions over unpaid USSD-related debts, a challenge that has persisted for years.
