By Ibrahim I. Newton
The Federal Government is poised to blacklist 18 banks for failing to settle nearly N200 billion owed to Nigerian telecom operators for Unstructured Supplementary Service Data (USSD) services. The move, expected to be announced tomorrow, follows years of unresolved debt that has strained relations between the banking and telecommunications sectors.
In December 2024, the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) issued a final directive to Deposit Money Banks (DMBs) and Mobile Network Operators (MNOs) to resolve the N250 billion USSD debt dispute. The directive outlined a structured payment plan, requiring banks to pay 60% of all debts incurred before February 2022 as a full and final settlement. The deadline for finalizing payment agreements was set for January 2, 2025, with complete settlement expected by July 2, 2025.
For debts incurred after February 2022, banks must pay 85% of all outstanding invoices by December 31, 2024, and ensure future invoices are settled within a month of issuance. The regulators also mandated the discontinuation of all litigation related to the USSD debt and warned that non-compliance would result in severe sanctions.
Telecom operators, who have called for a clear payment framework, expressed frustration over the ongoing debt, threatening to suspend USSD services if payments are not made. Smaller banks have begun repayments, but major lenders have yet to make significant progress.
USSD services are vital for financial inclusion in Nigeria, particularly in rural areas with limited internet access. The government’s intervention aimed to stabilize the financial and telecommunications sectors while ensuring the continued availability of these essential services.
