Nigeria: Govt issues Ultimatum on N250bn USSD debt

The Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) have issued a final directive to Deposit Money Banks (DMBs) and Mobile Network Operators (MNOs) to resolve the protracted N250 billion Unstructured Supplementary Service Data (USSD) debt dispute.

Under the terms of the directive, 60 percent of all debts incurred before the implementation of Application Programming Interfaces (APIs) in February 2022 must be paid as full and final settlement. Payment agreements—whether as lump sums or instalments—must be finalised by January 2, 2025, with full settlement due by July 2, 2025.

For debts incurred after February 2022, the CBN and NCC mandated that banks pay 85 percent of all outstanding invoices by December 31, 2024, and ensure that 85 percent of future invoices are settled within one month of issuance.

The regulators also directed both parties to discontinue all ongoing litigation related to the USSD debt issue, warning that non-compliance would attract stiff sanctions. “In view of the foregoing, the CBN and NCC hereby direct that all DMBs and MNOs adhere strictly to the outlined payment terms to ensure final resolution of this matter. Failure to comply will result in sanctions,” the circular stated.

The directive comes amid mounting pressure from telecom operators, who had earlier called for a clear payment framework to address the debt, which has strained relationships between the banking and telecom sectors. Additionally, the regulators emphasized the transition to end-user billing (EUB) for USSD services, noting that it would only apply to banks and telcos that meet the outlined payment obligations.

Pending this transition, operators are required to implement a “10-seconds rule,” ensuring sessions shorter than 10 seconds are not billed. 

USSD remains a vital tool for financial inclusion, particularly in rural areas where smartphone penetration and internet access are limited.