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BREAKING: CBN, NCC Set Deadline for Banks, Telecoms to Settle USSD Debt
This issue dates back to 2021 when telecoms threatened to halt unstructured supplementary service data (USSD) services due to unpaid bills, which had initially been around N42 billion in 2021 but has since ballooned significantly.
The latest directive, outlined in a joint circular issued on December 23, 2024, requires both banks and telecoms to settle the debt by agreeing on a payment plan.
DMBs and MNOs must finalize their payment agreements by January 2, 2025, with the option to pay either a lump sum or in installments. If installment payments are chosen, they must be completed by July 2025.
The regulators have stipulated that 60% of pre-API invoices must be settled as full and final payments.
Additionally, for all post-API debts incurred after February 2022, 85% must be paid by December 31, 2024, with future invoices also to be cleared within a month of receipt.
To ensure that the issue is resolved, the CBN and NCC have emphasized that any MNO or DMB failing to comply with these terms will face sanctions.
The regulators also noted that only those fully adhering to the payment plan would be allowed to transition to the End-User Billing (EUB) system, which aims to improve billing practices for USSD transactions.
If the payment terms are not met, the NCC will activate regulatory processes that could hinder the transition to the new billing system.
Furthermore, the MNOs are required to apply the “10-second rule” for USSD invoicing, meaning that sessions lasting less than ten seconds should not be billed.
The directive also gives prepaid billing DMBs the option to transition to EUB once the necessary regulatory steps are completed.
Both the CBN and NCC have stressed the importance of resolving the ongoing payment issues and the need for the banks and telecoms to meet their obligations to avoid further disruption to services.
The outcome of this directive could be pivotal in ensuring the stability of mobile banking services in Nigeria.
