Why FG Ordered Telecom Companies to Cut Off USSD Codes of Nine Banks

By Jessica Osajie / Posted January 15, 2025

The Federal Government, through the Nigerian Communications Commission (NCC) has directed telecommunications companies to suspend the Unstructured Supplementary Service Data (USSD) codes of nine banks due to unpaid debts. This action was confirmed in a public notice issued by the NCC’s Director of Public Affairs, Reuben Muoka, on Tuesday.

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USSD is a popular protocol among financial institutions that allows users to communicate with their mobile network operator via text messages. It’s also known as “quick codes” or “feature codes”. It is a session-based text messaging service that runs on the network. Users dial a special code that starts with an asterisk (*) and ends with a hash symbol (#). The network responds with a text message or menu options. Users can interact with the menu by selecting options, entering a PIN, or providing other numeric input.

The affected banks have until January 27, 2025, to settle their obligations or risk permanent disconnection of their USSD services. If the debts remain unpaid, the USSD codes, which are essential for mobile banking functions such as money transfers and airtime purchases, may be reassigned to other applicants.

Out of 18 banks initially implicated, nine have failed to clear their debts, which collectively exceed N200 billion. While the specific amount still owed by these banks has not been disclosed, some invoices reportedly date back to 2020, highlighting a longstanding issue.

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

The implication is that, originating Codes like 770, 919, and 822 could be disconnected. Consumers who rely on this service on the go through the mentioned banks might experience disruptions in accessing mobile banking services if a resolution is not reached.

According to the NCC, the profiled banks have failed to comply with an earlier December 2024 directive issued jointly by the Central Bank of Nigeria (CBN) and the commission.

A broader consequence is that the non-compliance will also affect the banks’ eligibility for the renewal of their USSD codes.

Originally designed for telecom services, USSD has become a critical tool for the banking sector, enabling financial services without requiring an internet connection. Between January and June 2024, the CBN reported over 252 million transactions worth N2.19 trillion conducted via USSD.

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However, in recent times, disputes over unpaid fees has threatened its availability to consumers. The NCC reiterated its commitment to protecting consumers, warning that disruptions are imminent unless the banks comply promptly.

This development could significantly impact the accessibility of mobile banking services for customers of the affected banks unless the situation is resolved promptly.

NOTE: Jessica is on Student Industrial Work Experience Scheme (SIWES) at DDNEWSONLINE.COM from the Department of Mass Communication, National Open University of Nigeria (NOUN).