The Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) have jointly issued a directive mandating Deposit Money Banks (DMBs) and Mobile Network Operators (MNOs) to immediately resolve their long-standing dispute over the N250 billion debt linked to the use of Unstructured Supplementary Service Data (USSD) platforms for banking services.
This directive, communicated in a circular 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 signed by Mr. Oladimeji Taiwo, Acting Director of the CBN’s Payments System Management Department and Chizua Whyte, Head of Legal and Regulatory Services at the NCC.
Dated December 20, the document outlined specific measures to resolve the impasse.
The apex bank and the NCC expressed profound concern regarding the persistence of the dispute, despite prior efforts to mediate and foster an amicable resolution. To ensure an equitable settlement, the regulators have directed that 60% of all pre-API invoices (invoices issued before the adoption of Application Programming Interfaces in February 2022) must be paid as a full and final settlement.
Payment Terms and Deadlines
Under the stipulated terms, DMBs and MNOs are required to agree on payment modalities—either a lump sum or installments—by January 2, 2025. In the case of installments, equal monthly payments must be completed by July 2, 2025.
For post-API debts, referring to transactions conducted after February 2022, the CBN and NCC have mandated that 85% of all outstanding invoices must be paid by December 31, 2024. Furthermore, all future invoices must be settled within one month of issuance, ensuring prompt and consistent payment compliance.
Litigation and Sanctions
In a move aimed at fostering reconciliation, both institutions instructed the immediate discontinuation of all litigation related to the USSD debt dispute. They warned that non-compliance with the directives would result in sanctions imposed by the respective regulatory bodies.
Transition to End-User Billing (EUB)
The circular also highlighted plans for transitioning to an end-user billing model. This shift will be applicable only to DMBs and MNOs that meet the prescribed payment obligations. Further guidance on public awareness initiatives regarding this transition is to be provided in due course.
In the interim, MNOs have been directed to implement a “10-second rule” for USSD invoicing. This measure dictates that sessions lasting less than ten seconds will not be billable, thereby ensuring fairness and reducing disputes over usage charges.
Additional Provisions
The directive permits DMBs with prepaid billing arrangements to migrate to the end-user billing model, contingent upon fulfilling the requisite regulatory conditions.
The regulators concluded with a stern warning: “Failure to adhere to the terms of this directive will result in necessary sanctions, thereby ensuring that both DMBs and MNOs honour their commitments.”
This decisive intervention by the CBN and NCC is anticipated to bring resolution to the long-standing financial impasse, fostering harmony between the banking and telecommunications sectors while safeguarding the interests of the Nigerian public.
