The Nigerian Communications Commission (NCC) and Central Bank of Nigeria (CBN) have jointly directed Deposit Money Banks (DMBs) and Mobile Network Operators (MNOs) to utilize alternative dispute resolution mechanisms to resolve a protracted N250 billion dispute over Unstructured Supplementary Service Data (USSD) services within the next six months.

This was part of measures to resolve the long-standing issue between the two parties.

Stakeholders, however, say the regulatory bodies should have issues a firm ultimatum with sanctions, stressing that for banks to withhold USSD deductions amounts to obtaining by false pretences, which can’t happen in civilized societies.

The joint fresh directives to the commercial banks and Telcos was issued in a recent joint 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.”

The circular to the Bank and the Telcos was signed by Oladimeji Taiwo, the Acting Director of the Payments System Management Department at CBN, and Chizua Whyte, Head of Legal and Regulatory Services at NCC.

The regulators’ directives amid growing tension between the financial services and telecommunications sectors over unpaid, outstanding USSD debts.

The circular states: “in order to address the dispute, the CBN and NCC, therefore, mandated that commercial banks must pay 60 per cent of all outstanding pre-API invoices as a full and final settlement, payment plans—either a lump sum or instalment—must be agreed upon by January 2, 2025, and instalment payments must be completed by July 2, 2025.”

The circular also stated that DMBs must pay 85 per cent of outstanding post-API invoices by December 31, and all future post-API invoices must be settled within a month of issuance.

“In respect of any pending litigation between the disputing parties on the USSD debt issue, the CBN and NCC directed both DMBs and MNOs to immediately halt all legal actions related to the USSD debt issue,” it stated.

Failure to comply with these directives, the circular warned, will attract undisclosed sanctions from the CBN and NCC.

The circular also noted that the transition to EUB would be activated only for compliant DMBs and MNOs in this regard.

Meanwhile, pending the completion of the transition, the MNOs have been instructed to adopt a “10-second rule” for USSD billing, which exempts sessions lasting less than 10 seconds from charges.

Additionally, DMBs using prepaid billing systems have the option to migrate to EUB, provided they complete the necessary regulatory processes.

The CBN and NCC’s joint circular also indicated plans for public enlightenment initiatives to educate telecoms subscribers about the transition to EUB, which is aimed at fostering transparency and improving the customer experience in the financial and telecoms spaces in the Nigerian economy.

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