In a decisive move to address long-standing debts, the Nigerian Communications Commission (NCC) has issued a directive authorizing telecom operators to disconnect the Unstructured Supplementary Service Data (USSD) codes of nine financial institutions. This decision underscores the commission’s commitment to ensuring regulatory compliance within Nigeria’s financial and telecommunications sectors.
Contents
The Debt Conundrum
A public notice issued by the NCC, signed by its Director of Public Affairs, Reuben Muoka, and obtained on January 15, 2025, revealed that the affected banks are required to settle their debts by January 27, 2025. Failure to meet this deadline will result in the disconnection of their USSD codes, potentially disrupting digital banking services for their customers.
While the NCC did not disclose the exact amount owed by these institutions, it was noted that the initial total debt across 18 banks exceeded ₦200 billion. The backlog includes invoices dating as far back as 2020. Among the 18 financial institutions initially owing, nine have yet to comply significantly with the directives issued by the Central Bank of Nigeria (CBN) and the NCC in a joint circular dated December 20, 2024.
The Banks in Question
The nine banks identified in the NCC notice include:
- Fidelity Bank Plc,
- First City Monument Bank (FCMB),
- Jaiz Bank Plc,
- Polaris Bank Limited,
- Sterling Bank Limited,
- United Bank for Africa Plc (UBA),
- Unity Bank Plc,
- Wema Bank Plc,
- Zenith Bank Plc.
The directive specifies that USSD codes assigned to these banks, including popular ones like *770#, *919#, and *822#, may be reassigned to other applicants if the debts are not cleared.
Implications for the Financial Sector
This development is poised to have far-reaching implications for both the banking and telecommunications industries. The disconnection of USSD codes could disrupt the seamless delivery of essential banking services such as fund transfers, balance inquiries, and bill payments. This could, in turn, erode customer confidence in the affected banks and highlight the necessity for prompt debt settlement.
Furthermore, the potential reassignment of USSD codes would serve as a stern reminder of the regulatory consequences of non-compliance, fostering a culture of accountability and transparency.
NCC’s Stance on Regulatory Compliance
The NCC’s directive reflects its unwavering stance on regulatory compliance. By holding financial institutions accountable, the commission aims to strengthen the synergy between telecom operators and banks, ensuring that operational costs such as USSD fees are promptly settled.
The regulator emphasized its commitment to fair and transparent practices, urging the affected banks to resolve their outstanding debts swiftly to avoid service disruptions.
Conclusion: A Call for Accountability
This directive marks a pivotal moment in the regulation of Nigeria’s financial and telecommunications sectors. It sends a clear message that non-compliance will not be tolerated, irrespective of the entity involved.
The NCC’s decision also highlights the critical role of collaboration between regulatory bodies like the NCC and the CBN in fostering financial stability and operational efficiency.
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