 has instructed telecom companies to disconnect the Unstructured Supplementary Service Data (USSD) codes of nine banks due to outstanding debts.){kind=link}
The Nigerian Communications Commission (NCC) has instructed telecom companies to disconnect the Unstructured Supplementary Service Data (USSD) codes of nine banks due to outstanding debts.
The directive was issued following a public announcement on Tuesday by Reuben Muoka, the NCC’s Director of Public Affairs.
The banks have been given until January 27, 2025, to clear their debts, or face permanent disconnection of their USSD services.
USSD codes are essential for mobile banking activities such as money transfers and airtime purchases. If the debts are not paid, these codes may be reassigned to other applicants.
Out of the 18 banks originally involved, nine still have unpaid debts totaling more than N200 billion, with some outstanding invoices dating back to 2020.
The affected banks include prominent institutions such as Fidelity Bank Plc, United Bank for Africa Plc, Polaris Bank Limited, Zenith Bank Plc, among others. Codes like 770, 919, and 822 are at risk of being disconnected. This could lead to disruptions for customers relying on these banks for mobile banking services if the issue is not resolved.
The NCC pointed out that the financial institutions failed to comply with a December 2024 directive from both the Central Bank of Nigeria (CBN) and the commission. Non-compliance with this directive also jeopardizes their ability to renew their USSD codes.
According to the CBN, more than 252 million transactions valued at N2.19 trillion were carried out via USSD between January and June 2024, highlighting its growing importance in the banking sector.
Originally intended for telecom services, USSD has become a vital tool for financial transactions, especially in areas with limited internet access.
The NCC reiterated its commitment to safeguarding consumer interests and warned that service disruptions are imminent unless the banks settle their debts.