The Nigerian Communications Commission (NCC) has instructed telecommunications companies to deactivate the Unstructured Supplementary Service Data (USSD) codes of nine banks due to outstanding debts.
In a public notice issued on Tuesday, the NCC’s Director of Public Affairs, Reuben Muoka, confirmed the directive, setting a deadline of January 27, 2025, for the banks to settle their debts or face permanent disconnection.
According to punch, the USSD codes, essential for mobile banking services such as funds transfers and airtime purchases, may be reassigned to other applicants if the debts remain unpaid.
Of the 18 banks initially implicated, nine are yet to clear their debts, reportedly amounting to over N200 billion. While the exact sum owed was not disclosed, the regulator revealed that some invoices have been outstanding since 2020.
Banks affected by this directive include Fidelity Bank Plc, United Bank for Africa Plc, Polaris Bank Limited, and Zenith Bank Plc, among others. Codes such as 770, 919, and 822 could face disconnection, potentially disrupting mobile banking services for their customers.
The NCC stated that the financial institutions have failed to adhere to a joint directive issued by the Central Bank of Nigeria (CBN) and the commission in December 2024. Non-compliance with this directive also jeopardises the renewal of the banks’ USSD codes.
Between January and June 2024, the CBN recorded over 252 million transactions worth N2.19 trillion conducted via USSD. Initially designed for telecom services, USSD has evolved into a crucial tool for the banking sector, providing financial services without the need for internet connectivity. However, disputes over unpaid fees threaten its continued availability.
The NCC reiterated its commitment to protecting consumers, warning that service disruptions are inevitable unless the banks comply with the directive.
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