BREAKING: FG Approves Disconnection Of USSD For Zenith Bank, Others Over Unpaid Debts

FG has approved the immediate disconnection of USSD for Zenith Bank among others over unpaid debts.

NaijaOnPoint Nigeria reports that the Federal Government through the Nigerian Communications Commission (NCC) has ordered telecommunications companies to cut off the Unstructured Supplementary Service Data (USSD) codes of nine banks over outstanding debts.

This  move follows a public notice issued on Tuesday by the NCC’s Director of Public Affairs, Reuben Muoka.

The affected banks have until January 27, 2025, to settle their debts or face permanent disconnection.

USSD codes, vital for enabling mobile banking services such as money transfers and airtime purchases, may be reassigned to other applicants if payments are not made.

Out of the 18 banks initially involved, only nine have yet to clear their debts, which reportedly exceed N200 billion.

While the regulator did not specify the exact amount still owed, it revealed that some invoices have remained unsettled since 2020.

The affected financial institutions include Zenith Bank Plc, Fidelity Bank Plc, First City Monument Bank, Jaiz Bank Plc, Polaris Bank Limited, Sterling Bank Limited, United Bank for Africa Plc, Unity Bank Plc, and Wema Bank Plc.

Codes such as 770, 919, and 822 are among those that could be disconnected.

Consumers relying on these banks might experience disruptions in accessing mobile banking services if the issue persists.

The NCC explained that the financial institutions have failed to comply with a December 2024 directive issued jointly by the Central Bank of Nigeria (CBN) and the commission.

This non-compliance also affects the banks’ eligibility for the renewal of their USSD codes.

Between January and June 2024, the CBN reported over 252 million transactions worth N2.19 trillion conducted via USSD.

Originally designed for telecom services, USSD has become a critical tool for the banking sector, enabling financial services without requiring an internet connection.

However, disputes over unpaid fees have threatened its availability to consumers.

The NCC reiterated its commitment to protecting consumers, warning that disruptions are imminent unless the banks comply promptly.

Related