The Central Financial institution of Nigeria (CBN) and the Nigerian Communications Fee (NCC) have ordered banks to pay ₦212.5 billion—85% of a ₦250 billion debt owed to telecom operators for USSD prices—by December 31, 2024. The December 20 memo, obtained by TechCabal, comes after years of delays and disputes over USSD funds, which have led to the rising debt.

Regardless of regulatory mandates requiring banks to gather and remit the USSD charges since 2021, many banks have resisted. They argue that the fees are unfair and that USSD expertise is outdated. 

Segun Agbaje, CEO of GTCO, acknowledged, “If you wish to cost ₦20 for the service, go forward. However acquire it your self. Don’t come to us.” Comparable issues had been raised by the late Herbert Wigwe, who questioned how telcos decide the charges, arguing that USSD is an outdated expertise that can quickly turn out to be out of date.

These sentiments, broadly shared amongst Nigerian financial institution executives, have contributed to the expansion of the USSD debt regardless of earlier regulatory efforts. As of November 2024, telecom operators declare banks owe ₦250 billion for USSD providers.

The December 20 directive seeks to expedite debt settlement and implement strict cost timelines. Underneath the brand new guidelines, banks should pay 85% of latest invoices inside one month of receipt. Moreover, by January 2, 2025, banks and telecom operators should agree on a cost plan to settle 60% of all excellent invoices earlier than utilizing any telco’s USSD platform.

Failure to adjust to the directive will result in sanctions, together with fines, operational restrictions, or different regulatory actions designed to implement compliance.

There are additionally incentives for banks to pay on time. If banks meet specified cost milestones, the NCC will start the transition to Finish-user Billing (EUB), the place prospects—moderately than the banks—would straight pay for USSD providers. Finish-user billing is taken into account the long-term answer to the cost dispute however will solely be out there to compliant events.