Telcos and NCC Stand Firm on Deadline as Lenders Rush to Settle Arrears
The Nigerian Communications Commission (NCC) and telecommunications companies have ruled out any extension to the payment deadline for Nigerian banks over unpaid Unstructured Supplementary Service Data (USSD) debts. The January 27, 2025, deadline passed on Monday, leaving defaulting banks scrambling to comply and avoid disconnection.
Speaking on the matter, the Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), Gbenga Adebayo, confirmed the decision to maintain the deadline. “Non-compliance at any stage will have consequences, and we hope to avoid any disruption of services,” Adebayo said.
Background on the Debt Dispute
On January 15, 2025, the NCC issued a notice to nine Nigerian banks, instructing them to clear outstanding debts related to USSD services by the end of the month. USSD is a vital service that enables millions of Nigerians to perform banking transactions without internet access.
Ahead of the deadline, two of the nine banks had cleared their debts, reducing the number of defaulters to seven by last week. On Monday, one additional bank expressed its intention to pay, leaving five or six banks still in arrears by the close of business.
“This is just the first phase of the directive. We hope that banks that have complied with this phase will continue to meet their obligations in subsequent ones,” Adebayo stated.
What’s Next for Banks and Telcos?
The settlement of USSD debts is part of a three-phase directive issued by the NCC. The second phase requires banks to fully settle all pre-API invoices by July 2, 2025, while the third phase mandates 85 percent payment of post-API invoices by December 31, 2025.
Adebayo emphasized that future compliance would be strictly monitored, with potential consequences for defaulters. “When it comes to the second and third phases, we expect full compliance,” he noted.
Potential Service Disruptions
With the USSD service playing a crucial role in Nigeria’s financial ecosystem, disruptions could have widespread implications, affecting millions of customers who rely on the service for day-to-day banking. The NCC and telcos remain firm in their stance, hoping the outstanding banks will act swiftly to prevent disconnection and further financial strain on their customers.
The outcome of this debt standoff will likely set the tone for how similar disputes between banks and telcos are handled in the future.
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