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CBN ,NCC and DMBs on the N250b USSD debts
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By Sonny Aragba-Akpore
After over five years of bickerings on the debts owed by Money Deposit Banks(DMBs) for Unstructured Supplementary Service Data (USSD) platforms,respite is underway.
USSD is the platform through which bank customers transfer money digitally on their phones without resorting to the internet.
USSD banking is an SMS-based mobile banking service, where a USSD shortcode is used to access financial services like transfers, bill payments, airtime among others.
Unstructured Supplementary Service Data (USSD) allows users without a smartphone or data/internet connection to use mobile banking through codes specific to each bank.
There is however a 150.18 percent decline in USSD usage for financial transactions as users move to Internet banking.
According to the CBN, the total transaction value with USSD was N2.19 trillion between January and June 2024, a decline of 54.75 percent from N4.84 trillion in the same period of 2023.
The volume of transactions fell by 150.18 percent to 252.06 million from 630.6 million.
In 2021 when GSM services turned 20 in Nigeria the then Group Managing Director of Zenith Bank Plc, Mr Ebenezer Onyeagwu, said, “The introduction of USSD changed everything. Without telecoms infrastructure, there is no USSD code.”
But this sentiment is not shared by many bank executives including Segun Agbaje, CEO of GTCO, who recently stated, “If you want to charge N20 for the service, go ahead. But collect it yourself. Don’t come to us.”
According to industry sources, the non-payment of this debt, which telcos peg at N250 billion, has led to an investment slowdown in USSD infrastructure.
The December 20,2024 joint memo by CBN and NCC seeks to clean up the protracted USSD mess and enforce payment timelines.
> While the banks own the accounts,the Mobile Network Operators (MNOS) own the networks.
> But there have been disagreements on payment terms that have plagued the banking and telecommunications sectors so much that the Central Bank (CBN) and the Nigerian Communications Commission ( NCC) had to intervene several times in the past to see how the matter could be resolved.
> All that failed until December 20,2024 when a circular was endorsed by both regulators on the way forward.
The Circular signed by Ag Director, Banking Payments System Department at CBN ,Oladimeji Yisa Taiwo and Chizua Whyte,Head,Legal and Regulatory Services at the NCC stated that:
> the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC)
> are deeply concerned that the protracted dispute between Deposit Money Banks (DMBs) and
> Mobile Network Operators (MNO) over the usage of the MNOs USSD platform for banking
> services has remained unresolved despite best efforts.
> “In view of the foregoing, the CBN and the NCC hereby direct DMBs and MNOs as follows:
> . That sixty per cent 60% of all pre-API invoices must be paid as full and final settlement
> of such invoices. In this regard, payment plans (lump sum or installments) must be
> agreed between a concerned DMB and MNO by January 2, 2025. For the avoidance
> of doubt, where installmental payment is proposed by a DMB, such proposal must be
> based on equal monthly instalments, and payment must be completed by July 2, 2025
> at the latest. That in furtherance of earlier resolutions by the CBN and the NCC, M B s must pay
> eighty-five per cent (85%) of all outstanding invoices issued after the implementation
> of Application Programming Interfaces (API) (i.e. February 2022) between the
> concerned DMB and MNO (i.e. post-API debts) by December 31, 2024. Similarly,
> eighty-five per cent (85%) of all future invoices must be liquidated within one month
> of service of the invoice.
> .That subject to satisfactory implementation of the directives in Paragraphs 1 and 2
> above and in furtherance of the understanding between DMBs and MNOs on
> transition to End-User Billing (EUB), the NCC will activate the necessary regulatory
> processes to revert to EUB. Only MNOs and DMBs in full compliance with
> Paragraphs 1 and 2 above will be allowed to transition to EUB.
The NCC and the CBN
> will provide guidance on public enlightenment measures in respect of the transition in
> due course.
> .That pending completion of the transitional arrangements in Paragraph 3 above,
> MNOs are to adopt the “10-seconds rule” for USSD invoicing. This means that any
> USSD session lasting less than ten seconds is not billable.
> .DMBs on prepaid billing would also have the opportunity to migrate to EUB subject
> to conclusion of the regulatory processes stated in Paragraph 3 above.
> That DMBs and MNOs should immediately discontinue any legal proceedings on the subject matter forthwith.
The circular advised that “DMBs and MNOs should immediately discontinue any litigation by them or on
> their behalf on the matter.DMBs and MNOs are directed to ensure full implementation of the Directives
> contained in this Joint Circular and to note that non-compliance will attract
> necessary sanctions within the respective regulatory powers of the CBN and the NCC”.
Gbenga Adebayo,an Engineer and Chairman of Association of Licensed Telecommunications Operators of Nigeria (ALTON) confirmed the development saying:
“The dispute over Unstructured Supplementary Service Data (USSD) charges between Nigerian banks and telecommunications companies (telcos) has been ongoing since 2019. The disagreement centers on who should bear the costs associated with USSD services used for financial transactions. “
“In October 2019, the issue became public when banks refused to pay for USSD services utilized by their customers, proposing instead that telcos adopt end-user billing. Telcos disagreed, citing potential double billing and regulatory restrictions.
By August 2020, the Nigerian Communications Commission (NCC) reported that banks owed telcos approximately ₦17 billion in USSD charges. “
Despite regulatory interventions, the debt continued to accumulate, reaching about ₦42 billion by 2020 and further increasing in subsequent years. “
“As of December 2024, the outstanding USSD debt is estimated at ₦250 billion.
The Central Bank of Nigeria (CBN) and the NCC have issued directives for banks and telcos to settle this debt, with specific payment plans and deadlines extending into 2025. “
He explained in summary, that the USSD debt between Nigerian banks and telcos has been outstanding for over five years, originating in 2019 and persisting through to the present day sadly “.
On Friday December 27,2024 the Nigerian Communications Commission (NCC) approved the disconnection of Exchange Telecommunications Ltd. from MTN Nigeria network due to the non-settlement of interconnect charges.
The commission made this known in a public notice signed by Reuben Muoka, the Public Affairs Director at NCC,”The Exchange Telecommunications is a local and international interconnect carrier.
The Nigerian Communications Commission hereby notifies the public that approval has been granted for the disconnection of Exchange Telecommunications Ltd.
(Exchange) from MTN Nigeria Communications Ltd. (MTN) as a result of non-settlement of interconnect charges,” NCC said.
The commission noted that the Exchange was notified of the application and was given opportunity to comment and state its case.
It said that the commission, having examined the application and circumstances surrounding the indebtedness, determined that the Exchange does not have sufficient reason for non-payment of the interconnect charges.
NCC said the disconnection of the Exchange Telecommunications to MTN was in accordance with Section 100 of the Nigerian Communications Act, 2003 and the Guidelines on Procedure for Granting Approval to Disconnect Telecommunications Operators, 2012.
“At the expiration of five days from the date of this notice, MTN will discontinue passing voice and data traffic through Exchange and will, thereafter, utilise alternative channels in interconnecting with other network service
providers.
News
Plateau in panic mode as nine members of same family 2 month old baby killed in renewed attack
No fewer than nine members of the same family, including a two-month-old baby, were killed in a fresh attack by suspected gunmen on Kum and Wereng-Camp communities in Riyom Local Government Area of Plateau State late Saturday night.
The attack, according to residents, began at about 11:30 p.m. on Saturday and lasted for more than one hour, leaving the village head of the community critically injured after he was allegedly attacked by the assailants.
A resident, Precious Tok, told Vanguard that the victims were slaughtered in their home during the coordinated assault, describing the incident as one of the deadliest attacks witnessed in the area in recent times.
He said the gunmen invaded the communities in large numbers, shooting indiscriminately and forcing terrified residents to flee into nearby bushes for safety.
The National Publicity Secretary of the Berom Youth Moulders Association, Rwang Tengwong, who confirmed the attack, said the assailants struck under the cover of darkness and unleashed violence on helpless residents.
According to him, the attack wiped out nine members of one family, including a two-month-old infant, while the village head sustained life-threatening injuries and was rushed to hospital for treatment.
He added that security agencies had been alerted and expressed hope that the perpetrators would be apprehended and brought to justice.
The latest attack has thrown the affected communities into mourning, with residents urging the Federal and Plateau State governments to strengthen security across Riyom and other vulnerable communities to halt the recurring attacks.
As of the time of filing this report, security personnel had reportedly been deployed to the affected communities, while many residents remained displaced and fearful of further attacks.
Efforts to obtain official confirmation from the Plateau State Police Command were unsuccessful. (Sunday Vanguard)
News
Atiku Condemns Proposed N50,000 WAEC, NECO Examination Fees
Former Vice President Atiku Abubakar has criticised the Federal Government’s decision to approve a uniform N50,000 registration fee for the Senior Secondary School Certificate Examinations (SSCE) conducted by the West African Examinations Council (WAEC) and the National Examinations Council (NECO), warning that the policy could further limit access to education for millions of Nigerian students.
The Federal Government, through the Federal Ministry of Education, approved the adoption of a uniform N50,000 registration fee for WAEC and NECO SSCE internal examinations, effective from 2027.
Under the new arrangement, NECO’s registration fee will increase from N30,000 to N50,000 per candidate, while WAEC’s fee will rise from N27,000 to the same amount.
The approval was contained in a memo dated June 18, 2026, signed by the Director of Senior Secondary Education at the Federal Ministry of Education, Adeniji Ibrahim, on behalf of the Minister of Education. The memo, addressed to the Registrar of NECO, stated that the decision followed a meeting between the ministry and examination bodies held on March 31, 2026, where stakeholders agreed to adopt a harmonised fee structure.
Reacting in a statement issued by his Senior Special Assistant on Public Communication, Phrank Shaibu, Atiku described the planned increase as “cruel, economically insensitive and fundamentally incompatible” with the government’s obligation to make education accessible to every Nigerian child.
He argued that the policy comes at a time when many households are grappling with rising inflation, escalating food and transportation costs, higher electricity tariffs, unemployment and declining purchasing power.
“It is unconscionable that at a time when Nigerian families are battling record inflation, soaring food prices, rising transportation costs, crippling electricity tariffs, stagnant incomes and widespread unemployment, the Tinubu administration has chosen to make education even more expensive,” Atiku said.
The former vice president maintained that education remains one of the most important pathways to social mobility, warning that higher examination fees could force more children out of school and deny qualified students the opportunity to pursue higher education.
“Every additional financial burden imposed on parents translates into another child being denied the opportunity to learn, dream and contribute meaningfully to society,” he said.
He noted that Nigeria already has one of the world’s largest populations of out-of-school children and argued that government efforts should be focused on reducing educational barriers rather than introducing policies that could worsen the situation.
“Nigeria already bears the painful distinction of having one of the largest populations of out-of-school children in the world. Any government confronted with such a national emergency should be investing aggressively to bring these children back into school,” he added.
Atiku further warned that the increase in WAEC and NECO fees, alongside the recent hike in fees for Federal Unity Colleges, would disproportionately affect low- and middle-income families already struggling to meet basic needs.
According to him, many academically qualified students may be unable to sit for the qualifying examinations required for admission into tertiary institutions due to financial constraints.
“The recent increase in WAEC and NECO examination fees represents far more than another financial burden on parents. It is a systemic filter that will inevitably restrict access to tertiary education for thousands of indigent but academically qualified Nigerian students,” he stated.
He also criticised the Federal Government’s reliance on the Nigerian Education Loan Fund (NELFUND), arguing that student loans cannot solve the challenges facing children who are unable to complete secondary education or afford examination fees.
“A university loan offers little comfort to a child who has already been priced out of secondary education or cannot afford the qualifying examination required to secure admission,” he said.
Atiku called on the Federal Government to prioritise investment in educational infrastructure, recruit more qualified teachers, expand the capacity of public tertiary institutions and implement policies that ensure poverty does not determine a child’s access to education.
He urged President Bola Tinubu’s administration to immediately reverse the increase in Unity School fees and the proposed N50,000 WAEC and NECO examination fees, while convening stakeholders to develop sustainable funding mechanisms for public education.
News
SERAP sues INEC over alleged N800bn APC govs campaign fund
The Socio-Economic Rights and Accountability Project has sued the Independent National Electoral Commission over alleged failure to investigate claims that governors elected on the platform of the All Progressives Congress diverted N800bn for political and campaign activities.
SERAP, in the suit filed before the Federal High Court in Abuja, is asking the court to compel INEC to probe allegations that APC governors have been making monthly contributions from their Federation Account Allocation Committee allocations into a dedicated fund for President Bola Tinubu’s 2027 re-election campaign.
The suit, marked FHC/ABJ/CS/1426/2026, was filed by SERAP’s lawyers, Kolawole Oluwadare and Kehinde Oyewumi.
The organisation is seeking an order of mandamus directing INEC to demand full disclosure from the governors and the APC on the alleged campaign fund, including the identities of contributors and the sources of the funds.
SERAP is also asking the court to compel the electoral body to investigate whether political parties and candidates are complying with the provisions of Section 91 of the Electoral Act on campaign finance limits and transparency.
According to SERAP, the allegations raised concerns about political finance accountability, electoral fairness and the ability of Nigerians to freely participate in the democratic process.
“Opaque political financing remains a major entry point for corruption and a threat to democratic legitimacy.
“Nigerians deserve to know who funds the candidates or political parties of their choice and the sources of any such funding,” SERAP said.
The organisation argued that the alleged use of public resources for political advantage could undermine confidence in Nigeria’s electoral system.
“The abuse of state resources for electoral advantage undermines democratic integrity and public trust. Fairness, transparency, and accountability in political or campaign finance are essential safeguards against corruption, state capture, and undue influence in democratic processes,” it stated.
SERAP maintained that INEC has a constitutional responsibility to monitor political financing and ensure that parties and candidates comply with campaign finance regulations.
“The commission has constitutional and statutory obligations to ensure that no individual or political party exceeds legally prescribed contribution limits, whether directly or indirectly, and to ensure full transparency regarding the origin and quantum of political funding,” the suit read.
The group said allegations involving large financial resources and possible misuse of public funds required urgent intervention by INEC to protect the credibility of the 2027 general elections.
“The allegations of diversion or opaque use of public funds pose a grave risk to the integrity of the 2027 general elections,” SERAP stated.
It argued that any deployment of public funds for political purposes could distort competition among candidates and political parties.
“Where public resources are allegedly diverted or deployed for political and campaign purposes, the result is not merely financial impropriety; it is a direct distortion of electoral competition,” the suit added.
SERAP also relied on provisions of the 1999 Constitution, the Electoral Act, the African Charter on Human and Peoples’ Rights, the International Covenant on Civil and Political Rights and the United Nations Convention Against Corruption.
SERAP argued that Section 14(2)(c) of the Constitution, which guarantees citizens’ participation in government, places an obligation on institutions to protect the integrity of the democratic process.
“The provision also imposes a binding obligation on all institutions, including INEC, to safeguard the integrity of the democratic process.
“Section 15(5) of the Nigerian Constitution requires public institutions to abolish all corrupt practices and abuse of power. Section 13 imposes a clear responsibility on INEC to conform to, observe and apply the provisions of Chapter 2 of the Constitution.
“Article 13 of the African Charter on Human and Peoples’ Rights guarantees every citizen the right to participate freely in government. Similarly, Article 25 of the International Covenant on Civil and Political Rights requires that elections reflect the free expression of the will of the electorate. Nigeria has ratified both treaties.
“Nigeria has made legally binding commitments under the UN Convention against Corruption to ensure accountability in the management of public resources. Articles 5 and 9 of the UN Convention against Corruption also impose legal obligations on the Commission to ensure proper management of public affairs and public funds.
“These commitments ought to be fully upheld and respected. Article 7(3) of the Convention requires institutions, including INEC, to ensure political finance transparency. The provisions aim to prevent corruption in and through elections,” the suit read.
It further stated that the alleged deployment of public resources for political purposes would not only amount to financial impropriety but could distort electoral competition.
“Where public resources are allegedly diverted or deployed for political and campaign purposes, the result is not merely financial impropriety; it is a direct distortion of electoral competition,” it added.
The group said any use of public funds for political advantage would constitute “a grave violation of national and international standards and a threat to electoral credibility.”
The organisation said these legal frameworks impose obligations on public institutions to promote transparency, accountability and fairness in electoral processes.
No date has been fixed for the hearing of the suit.
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