ICYMI: CBN, NCC direct banks, telcos to settle N250bn USSD debt

The Central Bank of Nigeria, (CBN) and the Nigerian Communications Commission, (NCC) have directed mobile network operators (MNOs) and deposit money banks (DMBs) to resolve the long-standing N250 billion unstructured supplementary service data (USSD) debt.

The directive is contained in a document titled, ‘2nd Joint Circular of the Central Bank of Nigeria and the Nigerian Communications Commission on the Resolution of the USSD Debt Issue Between Deposit Money Banks and Mobile Network Operators’, released on Monday.

On March 12, 2021, telecom operators said they would suspend the USSD service over N42 billion accumulated debt by banks (the amount was N32 billion in 2019). The move was, however, halted by Isa Pantami, former minister of communications and digital economy.

The telcos and banks eventually agreed on March 16, 2021, to adjust the charge on customers to N6.98k for each USSD transaction.

The Association of Licensed Telecommunications Operators of Nigeria (ALTON) said the USSD debt was N80 billion as at November 2022.

By November 16, 2023, the debt, according to telcos, had risen to N200 billion — up from N120 billion in May of the same year.

Further speaking on the debt on October 22, Gbolahan Awonuga, the executive secretary of ALTON, said the amount had increased to N250 billion.

In the joint circular signed by Chizua Whyte, head of legal and regulatory services at the NCC, and Oladimeji Taiwo, acting director of payments system management department at the CBN, the two regulators stated specific measures for the debt settlement.

The CBN and the NCC expressed deep concern over the protracted dispute between DMBs and MNOs regarding telco’s use of USSD platforms for banking services.

PAYMENTS MUST BE MADE IN INSTALLMENTS OR IN FULL

The regulators directed DMBs and MNOs to agree on payment plans, either a lump sum or installment by January 2, 2025.

They said if installment payments are opted for, they must be completed by July 2, 2025.

“That sixty per cent 60% of all pre API invoices must be paid as full and final settlement of such invoices. In this regard, payment plans (lump sum or installments) must be agreed between a concerned DMB and MNO by January 2, 2025,” the circular reads.

“For the avoidance of doubt, where installmental payment is proposed by a DMB, such proposal must be based on equal monthly instalments, and payment must be completed by July 2, 2025 at the latest.

“That in furtherance of earlier resolutions by the CBN and the NCC, DMBs must pay eighty-five per cent (85%) of all outstanding invoices issued after the implementation of Application Programming Interfaces (API) (ie February 2022) between the concerned DMB and MNO (e. post-API debts) by December 31, 2024.

“Similarly, eighty-five per cent (85%) of all future invoices must be liquidated within one month of service of the invoice.

“That subject to satisfactory implementation of the directives in Paragraphs 1 and 2 above and in furtherance of the understanding between DMBs and MNOs on transition to End-User Billing (EUB), the NCC will activate the necessary regulatory processes to revert to EUB. 

“Only MNOs and DMBs in full compliance with Paragraphs 1 and 2 above will be allowed to transition to EUB. The NCC and the CBN will provide guidance on public enlightenment measures in respect of the transition in due course.

“That pending completion of the transitional arrangements in Paragraph 3 above, MNOs are to adopt the ‘10-seconds rule’ for USSD invoicing. 

“This means that any USSD session lasting less than ten seconds is not billable.”

The regulators also said the “DMBs with prepaid billing options have the opportunity to migrate to EUB, subject to the completion of the required regulatory processes”.

They also stressed that non-compliance with these directives would result in sanctions, underscoring the regulators’ commitment to resolving the dispute and ensuring stability within both sectors.

The regulators added that failure to comply with the terms outlined in the directive would attract necessary sanctions.

They also urged that both the DMBs and MNOs uphold their obligations.