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Nigerian Banks Pay N259bn USSD Debt to Avoid Service Disruption

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Nigerian Banks Pay N259bn USSD Debt to Avoid Service Disruption

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Banks Avert USSD Shutdown with Last-Minute Debt Payment

By Emmanuel Kwada

In a move that’s being hailed as a major victory for Nigerian banks and their customers, nine major lenders have managed to settle their outstanding USSD debts to telecom operators, avoiding a potentially disastrous service disruption. The Nigerian Communications Commission (NCC) had issued a warning in January that the banks would be cut off from USSD services if they failed to pay up by January 27, but it seems they’ve managed to dodge that bullet.

According to Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), the situation has been de-escalated thanks to payments made by the banks. The affected banks, which included Fidelity Bank, First City Monument Bank, Jaiz Bank, Polaris Bank, Sterling Bank, UBA, Unity Bank, Wema Bank, and Zenith Bank, had accumulated a whopping N160bn in debts since 2019.

The affected banks, which included Fidelity Bank, First City Monument Bank, Jaiz Bank, Polaris Bank, Sterling Bank, UBA, Unity Bank, Wema Bank, and Zenith Bank, had accumulated a whopping N160bn in debts since 2019

The USSD debt crisis began when banks started using telecom-provided services but struggled to clear their charges. To resolve the issue, the NCC and the Central Bank of Nigeria (CBN) came up with a three-phase payment plan, which requires banks to pay 60% of outstanding pre-API invoices by January 2, 2025, settle all pre-API invoices in full by July 2, 2025, and clear 85% of post-API invoices by December 31, 2025.

This structured plan aims to fully resolve the N250bn debt while maintaining USSD accessibility for customers without internet access. It’s a huge relief for millions of Nigerians who rely on USSD services for their daily transactions. The development is also a testament to the effectiveness of the NCC and CBN’s intervention in resolving the debt crisis.

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