NCC Explains Why They Granted Approval to Mobile Network Operators to Disconnect the USSD Codes of Banks That Are Still Owing Them for the Service
The Nigerian Communications Commission (NCC) explained that they
approved the disconnection of USSD codes belonging to several banks that
still owed mobile network operators (MNOs) because failure to comply
with the CBN-NCC Joint Circular issued on December 20, 2024 means these
banks are unable to meet the Good Standing requirements necessary for
the renewal of their USSD Codes. The decision was made to protect the
interests of telecommunications companies and ensure compliance with
financial regulations. According to the NCC, the move was necessary
after extensive efforts to resolve the issue proved ineffective, leaving
no option but to take action in line with regulatory guidelines.
The disconnection order, which affects nine banks, is set to take effect from January 27, 2025, unless the financial institutions pay their outstanding invoices. In a statement signed by Reuben Muoka, the NCC’s Director of Public Affairs, the commission revealed that the banks involved include Fidelity Bank, First City Monument Bank, Jaiz Bank, Polaris Bank, Sterling Bank, United Bank for Africa, Unity Bank, Wema Bank, and Zenith Bank. The specific USSD codes assigned to these banks, such as *770# for Fidelity Bank and *966# for Zenith Bank, may become inaccessible if payments are not made promptly.
The NCC’s action follows a series of warnings and regulatory steps aimed at encouraging compliance. The commission explained that its decision aligns with the consumer protection mandate, which ensures that only institutions in good financial standing retain access to USSD services. The guidelines on short code operations in Nigeria, established in 2023, require financial institutions to maintain their obligations to MNOs. Failure to adhere to these guidelines disqualifies them from renewing their USSD code licenses.
As of January 14, 2025, the NCC reviewed the status of 18 financial institutions and found that nine banks had failed to comply with the Second Joint Circular issued by the Central Bank of Nigeria (CBN) and NCC on December 20, 2024. Some of these debts have remained unsettled since 2020, reflecting long-standing financial disagreements between banks and telecom operators. The inability of these banks to meet the "Good Standing" requirements further justifies the disconnection approval.
The financial implications of the dispute are substantial. Gbolahan Awonuga, the Executive Secretary of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), disclosed that banks owe telecom operators approximately N250 billion for USSD services. Despite ongoing discussions involving the NCC, CBN, and other stakeholders, little progress has been made. A joint directive issued on December 24, 2024, mandated banks to settle at least 85% of all outstanding invoices by December 31, 2024. However, the failure of some banks to comply has now led to regulatory enforcement measures.
The NCC also warned that disconnected USSD codes could be reassigned to new applicants if the debts remain unpaid. This move aligns with the commission’s policy of optimizing resources and ensuring that service providers are compensated for the infrastructure and technology supporting USSD transactions. Consumers using the affected banks' USSD platforms may experience disruptions starting January 27, 2025, unless the institutions resolve their financial obligations.
The disconnection order, which affects nine banks, is set to take effect from January 27, 2025, unless the financial institutions pay their outstanding invoices. In a statement signed by Reuben Muoka, the NCC’s Director of Public Affairs, the commission revealed that the banks involved include Fidelity Bank, First City Monument Bank, Jaiz Bank, Polaris Bank, Sterling Bank, United Bank for Africa, Unity Bank, Wema Bank, and Zenith Bank. The specific USSD codes assigned to these banks, such as *770# for Fidelity Bank and *966# for Zenith Bank, may become inaccessible if payments are not made promptly.
The NCC’s action follows a series of warnings and regulatory steps aimed at encouraging compliance. The commission explained that its decision aligns with the consumer protection mandate, which ensures that only institutions in good financial standing retain access to USSD services. The guidelines on short code operations in Nigeria, established in 2023, require financial institutions to maintain their obligations to MNOs. Failure to adhere to these guidelines disqualifies them from renewing their USSD code licenses.
As of January 14, 2025, the NCC reviewed the status of 18 financial institutions and found that nine banks had failed to comply with the Second Joint Circular issued by the Central Bank of Nigeria (CBN) and NCC on December 20, 2024. Some of these debts have remained unsettled since 2020, reflecting long-standing financial disagreements between banks and telecom operators. The inability of these banks to meet the "Good Standing" requirements further justifies the disconnection approval.
The financial implications of the dispute are substantial. Gbolahan Awonuga, the Executive Secretary of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), disclosed that banks owe telecom operators approximately N250 billion for USSD services. Despite ongoing discussions involving the NCC, CBN, and other stakeholders, little progress has been made. A joint directive issued on December 24, 2024, mandated banks to settle at least 85% of all outstanding invoices by December 31, 2024. However, the failure of some banks to comply has now led to regulatory enforcement measures.
The NCC also warned that disconnected USSD codes could be reassigned to new applicants if the debts remain unpaid. This move aligns with the commission’s policy of optimizing resources and ensuring that service providers are compensated for the infrastructure and technology supporting USSD transactions. Consumers using the affected banks' USSD platforms may experience disruptions starting January 27, 2025, unless the institutions resolve their financial obligations.
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