Mobile Network Operators (MNOs) like MTN and Airtel are planning to stop providing text message services to banks unless these banks pay off their outstanding debts by the end of today. This decision affects a service called Unstructured Supplementary Service Data (USSD), which is crucial for mobile banking and is used by millions of people in Nigeria.
The Nigerian Communications Commission (NCC), which regulates telecom services in the country, issued this order on January 15, 2025. According to this directive, nine banks were warned that they needed to pay their debts by January 27, 2025, or they would lose access to their USSD codes. These codes are essential for customers who want to perform banking transactions without needing an internet connection.
While some banks have complied and made payments as instructed by the NCC and the Central Bank of Nigeria (CBN), there are still a few banks that have not paid their debts. Gbenga Adebayo, the Chairman of the Association of Licensed Telecommunications Operators of Nigeria, commented on the situation, stating that many banks are following the rules set by the CBN and NCC, but there are still some that are not paying their debts. He mentioned that if these banks do not settle their accounts, they will be disconnected from the service as per the established protocol.
Tony Emoekpere, the President of the Association of Telecoms Companies of Nigeria, also spoke about the issue but did not provide specific details. He mentioned that there are about nine banks that owe money, but he was unsure how many of them have made their payments. He indicated that updates would be provided by the telecom operators in due course.
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In a memo dated December 20, the banking regulator and the NCC had previously set a deadline of December 31, 2024, for banks to pay at least 85% of their outstanding bills that date back to February 2022. Some of these banks have raised concerns about the regulations, leading the NCC to publish the names of the nine banks that owe money.
According to data from the CBN, there were over 252 million USSD transactions worth approximately 2.19 trillion Naira completed between January and June 2024. This is a significant decrease compared to the previous year, when 630.6 million transactions valued at 4.84 trillion Naira were conducted through USSD.
USSD was initially created by telecom companies for services like buying airtime and subscriptions, but it has now become an important financial tool, allowing users to access banking services without needing an internet connection.
