The Nigerian Communications Commission and telecommunications companies have ruled out extending the deadline for banks to clear their Unstructured Supplementary Service Data debts.
The deadline, which ended by close of business on Monday, January 27, 2025, leaves defaulting banks scrambling to meet payment obligations.
Initially, nine banks were in debt, but by Friday, the number had reduced to seven, with only two having made payments. As of Monday morning, one more bank indicated plans to settle, leaving six banks still owing, according to telecom operators.
This enforcement follows a directive issued by the NCC on January 15, warning banks to settle their debts or face the disconnection of their USSD codes. These codes are essential for millions of Nigerians conducting banking transactions without internet access.
Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria, confirmed the reduced number of defaulting banks but emphasized the importance of compliance.
“One of these seven has reached out to confirm they will settle their debt today (Monday), which will leave about five or six banks still outstanding,” Adebayo told journalists.
He explained that this payment is part of a three-phase plan outlined by the NCC and the Central Bank of Nigeria in a December 20 memo.
The first phase requires banks to settle 60% of all outstanding pre-API invoices by January 2, 2025.
“This first phase is critical. Non-compliance will result in disconnection of USSD services, which millions of Nigerians rely on for everyday banking,” Adebayo said.
The second phase mandates full payment of pre-API invoices by July 2, 2025, while the third phase requires 85% settlement of post-API invoices by December 31, 2025.
“We expect banks to comply fully in the second and third phases. Failure to comply at any stage will have consequences,” Adebayo noted.
When asked about an extension, Adebayo ruled it out, stating that any decision for an extension would require joint approval from both the NCC and CBN, which is unlikely.
“There will be no extension,” he stressed. “It’s crucial for non-compliant banks to settle their debts to avoid disrupting mobile banking services, which are vital to the economy and subscribers.”
NCC’s Director of Public Affairs, Reuben Mouka, also confirmed the deadline remains firm.
“We have made it clear that disconnection will occur if banks fail to meet the payment deadline,” Mouka said. “Telecom operators now have the responsibility to decide whether to disconnect services or not.”
