CBN, NCC order banks, telcos to settle N250b USSD debt dispute

This was contained 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,”and signed by the Ag Director of the Payments System Management Department at the CBN, Oladimeji Taiwo, and the Head of Legal and Regulatory Services at the NCC, Chizua Whyte.

In the circular dated December 20, 2024, CBN and NCC expressed worries over the protracted dispute between DMBs and MNOs regarding the use of MNOs’ USSD platforms for banking services. Despite several efforts, the issue remains unresolved.

This prompted the regulators to issue a directive mandating the payment of 60 per cent of all pre-API invoices.

The payment is expected by January 2, 2025, or in the case of installments, a date of July 2, 2025, is expected for the completion by DMBs and MNOs.

By December 32, 2025, DMBs are expected to pay 85 per cent of all outstanding invoices on post-API debts, which stem from transactions after the introduction of Application Programming Interfaces in February 2022. The regulators mandated that 85 per cent of all future invoices must be cleared within one month of issuance.

A discontinuation of all litigation related to the USSD debt issue was directed by CBN and NCC which vow sanctions over non-compliance.

The circular said, “In view of the foregoing, the CBN and the NCC hereby direct DMBs and MNOs as follows: 1. That 60 per cent of all pre-API invoices must be paid as full and final settlement. Payment plans (lump sum or installments) must be agreed upon between a concerned DMB and MNO by January 2, 2025. Installments must be based on equal monthly payments, with full payment due by July 2, 2025.

“DMBs must pay 85 per cent of all outstanding invoices issued after the implementation of APIs (i.e., February 2022) by December 31, 2024. Similarly, 85 per cent of future invoices must be liquidated within one month of service.”

The CBN and NCC said transition to end-user billing will be activated only for DMBs and MNOs that comply with the payment terms, adding that public enlightenment must be made.

They directed a “10-seconds-rule” for USSD invoicing, which will prevent the billing of sessions lasting less than 10 seconds.

The circular added, “Failure to comply with the terms outlined in this directive will attract necessary sanctions, ensuring that both DMBs and MNOs uphold their obligations.” (The Guardian)