USSD codes may become inactive in 14 days over banks’ N250b debts

THE GUARDIAN

• Nigeria’s financial inclusion target hangs in the balance
• 18 banks ignore CBN, NCC directive
• Four banks make substantial payments
• Customers given two weeks to explore options as NCC moves to withdraw shortcodes

Indications emerged, yesterday, that telecommunications operators will suspend the operation of the unstructured supplementary service data (USSD) offering in two weeks over non-remittance by deposit money banks (DMBs) of the charges, which have accumulated to N250 billion in debts.

Going by this new development, USSD transactions value, which the Central Bank of Nigeria (CBN) puts at N2.19 trillion, from 252.06 million transactions recorded in the first half of last year, may be threatened.

The data translates to N12 billion daily transactions. The suspension also portends danger for Nigeria’s financial inclusion campaign.

Whereas USSD was originally targeted at rural communities where Internet penetration is low or non-existent and feature phone users, the recent decline in digital banking service may have increased the USSD adoption rate among the general banking public.

But barring any last-minute truce, the suspension of the USSD service is expected in two weeks due largely to the failure of the banks to comply with the December 20, 2024, joint directive of the CBN and the Nigerian Communications Commission (NCC), which required the financial institution to make part payment of the debt by December 31, 2024.

According to the apex bank, payment agreements—whether as lump sums or instalments—must be finalised by January 2, 2025, with full settlement due by July 2, 2025.

The Guardian gathered yesterday that only four of the indebted banks have made substantial payments, while 18 are yet to respond appropriately.

Sources within the telecoms space said the two weeks announced is to prepare subscribers for the eventuality of the suspension of the important service.

The sources said the NCC has already approved the suspension, stressing that if the defaulting banks make no serious commitment after the suspension, the USSD service would be outrightly deactivated.

While details of the payment by the four banks have not been disclosed yet, The Guardian gathered that the NCC, which will withdraw the shortcodes from the telecoms operators in the coming weeks, is likely going to issue a notice today (Tuesday) on the status of the debts and banks.

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