The Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) have directed Deposit Money Banks (DMBs) and Mobile Network Operators (MNOs) to resolve the long-standing N250bn USSD debt dispute.
The directive, 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,” was obtained by our correspondent on Monday.
This move follows a report by The PUNCH, which revealed that telecom operators had requested a structured payment plan from regulators to address the growing debt that has caused significant concern within both sectors.
The circular, dated December 20, 2024, and signed by Oladimeji Taiwo, Ag Director of the Payments System Management Department at the CBN, and Chizua Whyte, Head of Legal and Regulatory Services at the NCC, outlined the steps for debt settlement.
The regulators expressed deep concern about the ongoing dispute between DMBs and MNOs over the use of MNOs’ USSD platforms for banking services. Despite numerous attempts, the issue remains unresolved.
In response, the CBN and NCC have mandated that 60% of all pre-API invoices be paid as full and final settlement. DMBs and MNOs must agree on payment plans—either a lump sum or installments—by January 2, 2025. If installment payments are chosen, they must be completed by July 2, 2025.
For post-API debts, which arose after the introduction of Application Programming Interfaces (APIs) in February 2022, DMBs must pay 85% of all outstanding invoices by December 31, 2024. Additionally, 85% of all future invoices must be cleared within one month of issuance.
The regulators have also directed an immediate halt to all litigation concerning the USSD debt issue. Non-compliance with these directives will result in sanctions from the relevant regulatory bodies.
The circular outlined the following key points:
- Pre-API Invoices: 60% of all pre-API invoices must be paid as full settlement. Payment plans (lump sum or installments) must be agreed upon by January 2, 2025, with installment payments completed by July 2, 2025.
- Post-API Invoices: DMBs must pay 85% of all outstanding invoices from February 2022 onwards by December 31, 2024. Future invoices must be settled within one month of issuance.
- End-User Billing: The transition to end-user billing will only be activated for DMBs and MNOs that comply with the payment terms. MNOs must implement the “10-seconds rule” for USSD invoicing, where sessions lasting less than 10 seconds will not be billable.
The CBN and NCC emphasized that non-compliance with the outlined directives would lead to sanctions, reinforcing the regulators’ commitment to resolving the dispute and ensuring stability in both sectors.
