N250 billion debt: CBN, NCC order banks, telcos to settle USSD dispute

The Central Bank of Nigeria, in conjunction with the Nigerian Communications Commission, has instructed Deposit Money Banks and Mobile Network Operators to resolve the protracted dispute regarding the N250 billion USSD debt.

The directive, titled “2nd Joint Circular of the Central Bank of Nigeria and the Nigerian Communications Commission on the Resolution of the USSD Debt Issue Between Deposit Money Banks and Mobile Network Operators,” was exclusively obtained by our correspondent on Monday.

The circular dated December 20, 2024, signed by the Ag Director of the Payments System Management Department at the CBN, Oladimeji Taiwo, and the Head of Legal and Regulatory Services at the NCC, Chizua Whyte, outlined specific measures for debt settlement.

The regulators expressed deep concern over the protracted dispute between DMBs and MNOs regarding the use of MNOs’ USSD platforms for banking services. Despite several efforts, the issue remains unresolved.

In response to this, the CBN and NCC directed that 60 per cent of all pre-API invoices must be paid as full and final settlement.

DMBs and MNOs are required to agree on payment plans, either a lump sum or an installment, by January 2, 2025. If installment payments are chosen, they must be completed by July 2, 2025.

For post-API debts, which stem from transactions after the introduction of Application Programming Interfaces in February 2022, the CBN and NCC mandated that DMBs pay 85 per cent of all outstanding invoices by December 31, 2024. Additionally, 85 per cent of all future invoices must be cleared within one month of issuance.

The CBN and NCC also directed the immediate discontinuation of all litigation related to the USSD debt issue, adding that failure to comply with the directives would result in sanctions by the relevant regulatory bodies.

The circular said, “In view of the foregoing, the CBN and the NCC hereby direct DMBs and MNOs as follows: 1. That 60 per cent of all pre-API invoices must be paid as full and final settlement. Payment plans (lump sum or installments) must be agreed upon between a concerned DMB and MNO by January 2, 2025. Installments must be based on equal monthly payments, with full payment due by July 2, 2025.

“DMBs must pay 85 per cent of all outstanding invoices issued after the implementation of APIs (i.e., February 2022) by December 31, 2024. Similarly, 85 per cent of future invoices must be liquidated within one month of service.”

The CBN and NCC also emphasised that the transition to end-user billing will be activated only for DMBs and MNOs that comply with the payment terms.

Both agencies will provide further guidance on public enlightenment initiatives related to the transition.

Pending the finalisation of this transition, MNOs are instructed to implement the “10-seconds rule” for USSD invoicing, meaning that any session lasting less than ten seconds will not be billable.

The circular allows DMBs with prepaid billing options the opportunity to migrate to EUB, subject to the completion of the required regulatory processes.

The CBN and NCC stressed that non-compliance with these directives would result in sanctions, underscoring the regulators’ commitment to resolving the dispute and ensuring stability within both sectors.

The circular added, “Failure to comply with the terms outlined in this directive will attract necessary sanctions, ensuring that both DMBs and MNOs uphold their obligations.”