The Central Financial institution of Nigeria and the Nigerian Communications Fee have issued a closing directive to deposit cash banks and cell community operators to resolve the protracted dispute over unregulated supplementary service knowledge debt value N250bn.
The CBN and NCC are each regulatory companies of the federal authorities.
The directive, contained in a joint round dated December 20, 2024, was signed by the CBN’s Appearing Director of Funds System Administration, Oladimeji Taiwo, and the NCC’s Head of Authorized and Regulatory Providers, Chizwa White.
The doc, completely obtained by our correspondent, outlined a structured fee plan for debt settlement and offered new operational tips for USSD companies.
Below the phrases of the Directive, 60 % of all money owed incurred previous to the implementation of the APIs have to be repaid in February 2022 as full and closing settlement.
Fee agreements – whether or not lump sums or instalments – have to be accomplished by January 2, 2025, with full settlement due by July 2, 2025.
For money owed arising after February 2022, the Central Financial institution of Nigeria and NCC have obligated banks to pay 85 per cent of all excellent invoices by December 31, 2024, and be certain that 85 per cent of future invoices are settled inside one month of issuance.
Regulators additionally directed each events to halt all ongoing litigation associated to the USSD debt concern, warning that non-compliance may lead to extreme penalties.
“In view of the above, the CBN and NCC hereby direct that each one DMBs and MNOs strictly adhere to the desired fee phrases to make sure the ultimate decision of the matter. Non-compliance will lead to penalties,” the round mentioned.
The transfer comes amid mounting stress from telecom operators, who had earlier referred to as for a transparent fee framework to deal with money owed, which has strained relations between the banking and telecom sectors.
As well as, regulators confirmed the transfer to end-user billing for USSD companies, noting that this can solely apply to banks and telecom firms that meet particular fee obligations.
Pending this switch, operators should implement the “10-second rule,” making certain that periods of lower than 10 seconds usually are not billed.
The round additionally highlighted the chance for banks at present utilizing pay as you go billing programs emigrate to EUB, topic to regulatory approval.
The CBN and NCC reaffirmed their dedication to resolving the debt deadlock, noting that the measures are geared toward selling stability in each the monetary and telecommunications sectors whereas making certain the continued availability of USSD companies to Nigerians.
In Nigeria, USSD is significant for monetary inclusion, particularly in rural areas the place smartphone penetration and web entry are restricted.
Banks rely closely on it, particularly for cell banking, and it is usually used for companies resembling airtime top-ups, invoice funds, and different telecommunications companies.
The debt disaster has continued for years, with telecom operators threatening to droop USSD companies until funds are made.
Whereas smaller banks have reportedly began repaying their obligations in instalments, the highest tier lenders – liable for the majority of the debt – are but to make important funds, in accordance with the president of the Affiliation of Licensed Telecommunications Operators of Nigeria, Gbenga Adebayo.
“Some funds have been recorded, however they’re decrease than expectations,” Adebayo mentioned. Punch In November.
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Enterprise & Financial system , Banks,Money owed of banks and telecom firms,cbn,NCC
