NCC, CBN in talks to resolve N250bn USSD debt crisis between Banks, telcos

The Nigerian Communications Commission (NCC) has announced ongoing discussions with the Central Bank of Nigeria (CBN) to address a longstanding Unstructured Supplementary Service Data (USSD) debt totaling ₦250 billion between telecom operators and commercial banks.

The negotiations aim to resolve a conflict that has strained relations between two critical sectors—telecommunications and banking—and impacted millions of Nigerians who rely on USSD services for financial transactions.

USSD, known as quick or feature codes, is a global system for mobile communications (GSM) protocol used to send text messages and initiate financial transactions such as cash transfers, balance inquiries, payments for services and others.

The crisis dates back to 2019 when telcos proposed charging N4.50 per 20 seconds of USSD usage in order to cover operational costs after years of providing the service for free.

But the banks kicked against this, saying a 450% increase in transaction costs will significantly grow the debt and strain relations between the two vital industries.

However, the NCC’s Director of Consumer Affairs Bureau, Dr Ikechukwu Adinde, who disclosed this move, said the commission was hopeful the issue would soon be settled.

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According to him, “The NCC remains committed to ensuring that the interests of all stakeholders—consumers, telcos, and banks—are protected.”

He insisted that a resolution is critical to maintaining the seamless operation of mobile financial services that millions of Nigerians depend on daily.

Akinde, who also said plans are on to introduce reforms at enhancing tariff transparency in the telecommunications industry, believed the new move between the NCC and the CBN would put the debt issue finally to rest.

On transparency and responsibility policy, Adinde said the changes, set to roll out in the coming months, will require telecom operators to provide consumers with clear, easily accessible tables outlining tariff plans, billing rates, and the terms and conditions associated with their services.

Indeed, Chief Executive Officer (CEO) of MTN Nigeria, Karl Toriola had said in October that banks might be disconnected from the USSD platform due to debt arising from the use of the quick codes by their customers.

Toriola had said mobile network operators (MNOs) might, subject to regulatory approval, suspend use of the service on the network for banking operations, as the debt had continued to pile up and was becoming unsustainable to the operators.

Also, the executive secretary of the Association of Licensed Telecommunication Operators of Nigeria (ALTON), Gbolahan Awonuga, said in October that the debt between telecoms operators and commercials had hit N250 billion.

Earlier, the telcos had lamented that they could no longer provide the services free, proposing a cut of N4.50k per 20 seconds from the charges paid by customers to the banks.

But the banks kicked against this, adding that it would raise costs by 450 percent.