In a decisive move to resolve the long-standing N250 billion USSD debt dispute, the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) have issued a joint directive mandating Deposit Money Banks (DMBs) and Mobile Network Operators (MNOs) to settle outstanding payments and cease all related litigation.
The regulators’ circular, obtained exclusively, outlines a structured payment plan aimed at ending the protracted conflict that has plagued the financial and telecommunications sectors. Key directives include:
Pre-API Debt Settlement: Banks are required to pay 60% of all invoices incurred before the implementation of Application Programming Interfaces (APIs). Payment plans, either lump sum or installments, must be agreed upon by January 2, 2025, with full payment completed by July 2, 2025.
Post-API Debt Settlement: Banks must settle 85% of all invoices issued after February 2022 (post-API implementation) by December 31, 2024. Future invoices must be cleared within one month of issuance, with 85% of the total cleared.
Litigation Cessation: All legal proceedings related to the USSD debt issue must be immediately discontinued.
End-User Billing Transition: The implementation of end-user billing will only proceed for DMBs and MNOs that adhere to the stipulated payment terms.
10-Second Rule: Until the full transition to end-user billing, MNOs are mandated to implement the “10-second rule,” ensuring that USSD sessions lasting less than ten seconds are not billed.
Prepaid Billing Migration: DMBs utilizing prepaid billing have the option to migrate to end-user billing, pending the completion of necessary regulatory procedures.
Sanctions for Non-Compliance: Failure to comply with these directives will result in penalties from the relevant regulatory bodies.
The CBN and NCC emphasized the urgency of resolving the dispute to ensure stability within both sectors. This directive represents a significant step towards normalizing financial transactions via USSD and fostering a more harmonious relationship between banks and telecom operators.
