Barring any intervention, mobile Network Operators will discontinue text message services otherwise called Unstructured Supplementary Service Data (USSD) to banks over outstanding debts to the telecommunication companies by the close of business today.
The disconnection of the USSD service follows an order from the Nigerian Communications Commission (NCC), issued on January 15, 2025.
The telecom industry regulator had issued a directive to nine banks to clear their lingering debts by January 27, 2025, or risk losing access to their USSD codes.
The banks are Fidelity Bank (770), First City Monument Bank (329), Jaiz Bank (773), Polaris Bank Limited (833), Sterling Bank Limited (832), United Bank for Africa (919), Unity Bank (7799), Wema Bank (945), and Zenith Bank (966).
The USSD code, which impacts many Nigerians, enables banks’ customers to carry out banking transactions without internet access.
While some banks have made payments in line with directives from the NCC and the Central Bank of Nigeria (CBN), operators say a few are yet to meet their obligations.
In a memo dated December 20, 2024 the banking regulator and the NCC had set a deadline of December 31, 2024, for banks to settle 85 per cent of their outstanding invoices dating back to February 2022.
The banks, however, faulted the regulatory directives, causing the NCC to release the names of the nine indebted banks.
Data shows that 252.06 million USSD transactions, valued at N2.19 trillion, were completed between January and June 2024.
This marks a notable shift compared to the previous year when 630.6 million transactions worth N4.84 trillion were conducted via USSD.
Originally developed by telecom operators for services such as airtime purchases and subscriptions, USSD has evolved into a vital financial tool, providing banking services to users without the need for an internet connection.
