By Pascal Ibe

Claim

A Facebook page, Celebrity Chef, claimed that the Telecos have withdrawn their services from 18 banks over USSD debt.

Verdict

The claim is MISLEADING as the NCC only ordered telecommunications companies to disconnect the USSD codes assigned to nine financial institutions due to unpaid debts by January 27th.

Full Text

A Facebook page, Celebrity Chef has claimed that the Telecos in Nigeria has been ordered to disconnect 18 banks over USSD debt.

The claim reads, “18 banks affected as MTN, Airtel, and others disconnect USSD codes.

The post with over 170 reactions, generated anxiety and worries to Nigerians who commented on it.

Background

The issue of banks’ multi-billion naira USSD debt to telcos has lingered since 2020, rising from below N40 billion to N57 billion by the end of 2021 and N80 billion in 2022.

But now, the telcos claim the debt has risen above N250 billion and accused the banks of not complying with the repayment plan.

The recent development cannot be unconnected with a December joint meeting between the two regulators, NCC and the Central Bank of Nigeria, which resolved that the banks pay part of the money by December 31, last year,r, and defray the remaining gradually.

According to electronic payment statistics from the CBN, USSD transactions reached 252.06 million, valued at N2.19 trillion, between January and June 2024. The figures represent a substantial growth from the 2023 full-year data, where USSD transactions totaled 630.6 million, valued at N4.84 trillion

The suspension of USSD services will significantly disrupt banking transactions for millions of Nigerians, especially those in rural or underserved areas with limited internet access.

USSD?

USSD (Unstructured Supplementary Service Data) is a Global System for Mobile Communications (GSM) protocol that is used to send text messages. USSD is similar to Short Message Service (SMS).

USSD uses codes made up of the characters that are available on a mobile phone. A USSD message, which can be up to 182 characters long, establishes a real-time communication session between the phone and another device — typically, a network or server.

USSD can be used for Wireless Application Protocol (WAP) browsing, mobile money services, prepaid callback services, menu-based information services, and location-based content services.

With USSD, users interact directly from their mobile phones by making selections from various menus. Unlike an SMS message, during a USSD session, a USSD message creates a real-time connection. This means USSD enables two-way communication of information, as long as the communication line stays open. As such, queries and answers are nearly instantaneous.

Verification

In a report by Punch on Wednesday, the Nigerian Communications Commission authorized telecommunications companies to disconnect the Unstructured Supplementary Service Data codes assigned to nine financial institutions due to unpaid debts.

This directive was made in a Tuesday public notice signed by NCC’s Director of Public Affairs, Reuben Muoka.

The telecom regulator said affected banks must settle their outstanding obligations by January 27, 2025, or risk losing access to their USSD codes.

The commission revealed that, as of Tuesday’s close of business, nine out of 18 financial institutions had not complied with regulatory directives.

While other banks have cleared their debts, the total amount initially owed by the financial institutions was reported to exceed N200 billion.

However, the regulator did not disclose the precise debt currently owed by the affected banks.

According to the NCC, some of the unpaid invoices have remained unpaid since 2020, indicating a prolonged financial dispute between the banks and telecom operators.

Part of the notice read, “By the information made available to the commission as at close of business on Tuesday, 14th January 2025, of a total of 18 financial institutions, the nine institutions listed below have failed to comply significantly with the directives in the Second Joint Circular of the Central Bank of Nigeria and the commission dated December 20, 2024, for the settlement of outstanding invoices due to MNOS, some since 2020.”

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A Zenith Bank Customer, Yahaya Aliyu disclosed to FACTWATCH Nigeria that his USSD code service is still active.

Gerald Eze, a First Bank Customer, said his own is working but now slowly.

“Mine is opening each time I want to recharge airtime but the operation is becoming slow. I don’t know if this was a result of the looming disconnection.”

Conclusion 

As of 15th January, the claim that 18 banks’ USSD codes have been disconnected by MTN, Airtel, and others is MISLEADING.