The Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC), issued a joint directive, ordering Deposit Money Banks (DMBs) and Mobile Network Operators (MNOs) to settle the long-running N250 billion USSD debt dispute.
A circular dated December 20, 2024, obtained by our correspondent, detailed specific measures for addressing the dispute, which has been a source of significant concern in both the banking and telecom sectors.
Signed by Oladimeji Taiwo, Ag Director of the CBN’s Payments System Management Department, and Chizua Whyte, Head of Legal and Regulatory Services at the NCC, the circular calls for immediate action.
Despite previous efforts to resolve the issue, the dispute over the use of MNOs’ USSD platforms for banking services has persisted.
In response, the CBN and NCC have outlined clear payment terms to settle the debt.
Specifically, they mandated that 60% of all pre-API invoices be paid as full and final settlement.
DMBs and MNOs must reach an agreement on whether to pay in a lump sum or via installments by January 2, 2025. If installment payments are chosen, they must be completed by July 2, 2025.
For post-API debts—those incurred since the introduction of Application Programming Interfaces (APIs) in February 2022—the circular directs DMBs to pay 85% of all outstanding invoices by December 31, 2024.
Additionally, all future invoices must be settled within one month of issuance.
The regulators have also ordered the immediate cessation of all legal actions related to the USSD debt issue, warning that failure to comply with the directives will result in sanctions.
The circular reads, “The CBN and the NCC hereby direct DMBs and MNOs as follows: 1. That 60% of all pre-API invoices must be paid as full and final settlement.
Payment plans (lump sum or installments) must be agreed upon between the concerned DMB and MNO by January 2, 2025.
Installments must be based on equal monthly payments, with full payment due by July 2, 2025.”
The CBN and NCC also announced that the transition to end-user billing (EUB) will be activated only for DMBs and MNOs that comply with the payment terms.
Pending the transition, MNOs are required to implement the “10-seconds rule” for USSD invoicing, ensuring that sessions lasting less than ten seconds will not be billable.
The circular emphasized that non-compliance with these directives will attract necessary sanctions, reinforcing the regulators commitment to resolving the debt issue and ensuring stability across both sectors.
