The Nigerian Communications Commission (NCC) has directed telecommunications companies to disconnect the Unstructured Supplementary Service Data (USSD) codes assigned to nine financial institutions due to unpaid debts.
In a public notice issued on Tuesday and signed by NCC’s Director of Public Affairs, Reuben Muoka, the regulator gave the affected banks until January 27, 2025, to settle their outstanding obligations or risk losing access to the vital USSD codes.
USSD codes, which are crucial for mobile banking services, could be reassigned to other applicants if the debts remain unpaid. Originally developed by telecom operators for basic services like airtime purchases, USSD technology now serves as a lifeline for financial inclusion, enabling banking services without internet access.
Data from the Central Bank of Nigeria (CBN) highlights the growing importance of USSD in the banking sector. Between January and June 2024, 252.06 million USSD transactions worth ₦2.19 trillion were conducted, reflecting significant growth compared to the 630.6 million transactions valued at ₦4.84 trillion recorded in 2023.
The NCC’s directive underscores its commitment to ensuring compliance with financial obligations while safeguarding the integrity of telecommunications and financial services.
