NCC approves disconnection of USSD services to debtor financial institutions

The Nigerian Communications Commission (NCC) has issued a directive to telecommunications companies to disconnect the Unstructured Supplementary Service Data (USSD) codes of nine financial institutions. This action comes in response to the banks’ failure to settle a staggering debt of N200 billion that has been accumulating since 2019.

In a public notice dated 15th Day of January 2025 and signed by Reuben Mouka, Director of Public Affairs, the NCC stated that it will allow Mobile Network Operators (MNOs) to disconnect USSD Codes from January 27, 2025, if the affected financial institutions fail to settle outstanding invoices owed to the telcos, adding “This action follows a directive issued in the Second Joint Circular of the Central Bank of Nigeria (CBN) and the NCC dated December 20, 2024, which outlined a framework for settling outstanding payments”.

The notice warned consumers that they may experience disruptions in accessing USSD services, which are essential for mobile banking, if the debts are not resolved. USSD codes, such as 770, 919, and 822, play a crucial role in providing banking services to customers without internet access. The NCC has indicated that unresolved debts could lead to the reassignment of these codes to other applicants.

In the statement, NCC stated, “As of close of business on Tuesday, 14th January 2025, of a total of 18 financial institutions, the nine institutions listed below have failed to comply significantly with the directives in the Second Joint Circular of the Central Bank of Nigeria and the commission dated December 20, 2024, for the settlement of outstanding invoices due to Mobile Network Operators (MNOs), some since 2020.”

The regulator further noted that the banks’ failure to comply with the CBN-NCC joint circular indicates their inability to meet the good standing requirements necessary for the renewal of the USSD codes assigned to them.

The NCC reiterated its commitment to consumer protection, informing the public that they may be unable to access the USSD platforms of the affected financial institutions starting January 27, 2025.

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