Telecommunications operators in Nigeria have received regulatory approval to disconnect Deposit Money Banks (DMBs) that fail to comply with a directive from the Nigerian Communications Commission (NCC) to clear a N250 billion Unstructured Supplementary Service Data (USSD) debt.
According to anonymous sources, the suspension of USSD services to defaulting banks could last for two weeks, providing customers with the opportunity to migrate to compliant banks. This drastic measure follows repeated directives from the NCC and the Central Bank of Nigeria (CBN), including a December 20 memo mandating banks to pay N212.5 billion—85% of the total debt—by January 1.
As of the deadline, only four banks had complied with the directive, while 18 others failed to settle their obligations, citing various reasons for non-payment.
The move to suspend USSD services could disrupt essential financial services, including balance inquiries, fund transfers, and bill payments, particularly for customers relying on USSD in rural and underserved areas. With the suspension looming, Nigeria’s financial inclusion agenda faces a significant challenge.
Industry stakeholders are urging swift intervention from the Federal Government and financial regulators to avert the disruption and its potential economic impact. Analysts warn that unresolved disputes between telcos and banks may erode public trust in both sectors and stall progress in digital banking adoption.
The coming weeks will be critical as telecommunications operators prepare to enforce the disconnections, signaling their frustration with the prolonged impasse over USSD debt repayment.
