By Adedapo Adesanya

Nigerian banks have started charging Unstructured Supplementary Service Data (USSD) fees from airtime balance of their customers as against their bank accounts after a tussle over unpaid backlogs.

One of such messages from GTCO said, “Dear Customer, please be informed that effective June 18, 2025, the N6.98 USSD fee will be deducted from your airtime balance, no longer from your bank account. Thank you”

Giving more explanation, a statement by the Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), Mr Gbenga Adebayo, and the group’s Publicity Secretary, Mr Damian Udeh said this change followed the guidelines of the Nigerian Communications Commission (NCC) for USSD pricing and service, developed with the Central Bank of Nigeria (CBN) and other partners.

It was further explained that under the new system, telecom companies will charge customers directly from their airtime at the rate of N6.98 for every 120 seconds of USSD use, noting that users will receive a message to give their consent before any money is deducted, and charges will only apply for successfully completed sessions.

Mr Adebayo assured that USSD banking services will still work as usual, as long as users have enough airtime.

“USSD services play a vital role in expanding access to financial services, particularly for unbanked and underbanked populations.

“However, the previous corporate billing model, where banks were billed by telecom operators, led to prolonged disputes over unpaid charges, service interruptions and uncertainty for customers.

“To address these challenges, the NCC’s 2025 determination introduced the End-User Billing (EUB) model, which allows mobile network operators to charge customers directly for USSD sessions.

“To achieve the implementation of the EUB model, the CBN and NCC have stipulated that only banks that meet certain regulatory and operational conditions are permitted to migrate,” Mr Adebayo noted, advising users to contact their telcos for connection problems and to reach out to their banks for issues related to transactions.

“To ensure a smooth transition, we urge subscribers to follow support guidelines, and alternative digital banking channels such as mobile apps, internet banking, and ATMs remain fully operational,” he said.

Mr Adebayo added that ALTON will keep working with the NCC, CBN, banks, and other partners to ensure the new system is fair and beneficial to everyone, especially customers.

This new method is being introduced because of the ongoing dispute between Nigerian banks and telecom operators over unpaid USSD fees.

In December 2024, the CBN and NCC told mobile network operators and banks to settle the N250 billion debt related to USSD services.

Telcos had threatened to stop USSD services if the banks didn’t pay up. In January, the NCC warned that USSD services might be suspended and said it might release a list of banks that still owed telecom operators.

On January 15, telcos were ordered to disconnect the USSD codes of nine banks by January 27 because of their unpaid debts.

Later, on February 28, MTN Nigeria announced that it had received N32 billion out of the N72 billion owed by banks as part of the USSD debt repayment.

This development is expected to ensure that no more rifts occur between both institutions.

By Adedapo Adesanya

The House of Representatives is investigating the N1.12 trillion spent on the Anchors’ Borrowers Programme (ABP) of the Central Bank of Nigeria (CBN) alongside the NIRSAL Microfinance Bank for N215 billion spent on agro-businesses, as well as the Bank of Industry (BoI) for disbursing N3 billion to 22,120 smallholder farmers through the Agriculture Value Chain Financing Programme.

The House Committee on Nutrition and Food Security led by its Chairman, Mr Chike Okafor, during an investigative hearing on the alleged misuse of government interventions and agricultural funding by departments, agencies, schemes, and programmes of the federal government, raised concerns that of the 24 participating financial institutions (PFIs) who disbursed the amount for the APB, only nine had indicated any interest in following up with the probe.

He said one of the key oversight mandates of the committee is to ensure proper implementation of intervention programmes by relevant government bodies related to food security and nutrition.

“We are probing how the CBN through the Anchors Borrowers Programme disbursed about N1.12 trillion to 4.67 million farmers involved in either maize, rice or wheat farming through 563 anchors.

“The CBN should note: we are aware that you have about 24 participating financial institutions (PFIs) through which you disburse these humongous amounts. I am also aware that you have written to 24 of them but we have evidence of only nine. So, please note. And also some of those PFIs have tried to make contact.

“Second point we are probing how NIRSAL disbursed N215, 066, 982, 074.50 so far to facilitate agriculture and agribusinesses, and also the Bank of Industry how you disbursed N3 billion to 22, 120 smallholder farmers through the agriculture value chain financing programme,” he said.

“One of the key oversight mandates of the Committee on Nutrition and Food Security is to ensure proper implementation of intervention programmes by relevant Ministries, Departments, and Agencies (MDAs) and agencies of government related to food security and nutrition. Investigations, monitoring of resource allocation, advancement of new laws, and strengthening of existing ones among others, on matters related to nutrition and food security.

“These are comprehensively contained in the committee’s jurisdiction as captured in the standing order of the House. Please, note that nutrition and food security are twin issues that cannot be separated and have been on the front burner of the renewed hope agenda of the present administration.

“The creation of this committee on Nutrition and Food security is a legislative response to join forces with the executive arm of government and other stakeholders to tackle these issues and make Nigeria a food-secured and nourished populace,” he stated.

A representative of NIRSAL Microfinance Bank, Mr Charles Bassey, said insecurity was a major challenge to the successful implementation of their loan scheme, adding that in trying to determine who was qualified to benefit from the intervention, they paid attention very closely to laid down guidelines.

“It was based on those guidelines that we disbursed these funds. Some of the challenges that they have written about include insecurity challenges. A couple of them had pointed to the fact that after they had invested the funds in agricultural business, they were not able to go back to the farms because of the experience of banditry and herdsmen.

“These delayed their seasonal interventions and harvesting. Some also pointed to natural disasters such as flooding and drought which affected them. A few of them actually asked for restructuring of the loan facility to allow them time to repay accordingly,” Mr Bassey said.

On his part, Group Head, Agric Finance and Solid Minerals, Sterling Bank, Mr Olushola Obikanye, said they had repatriated N113,490,756,332.54 to the CBN and were not owing under the scheme.

“Therefore, the total fund repatriated to the Central Bank of Nigeria is the cumulative of the undisbursed funds that were returned and the disbursed funds that were returned. The total funds repatriated to the central bank stood at N113,490,756,332.54. It leaves Sterling Bank with an outstanding of zero Naira zero Kobo that we are owing under this scheme,” he said.

By Adedapo Adesanya

The Central Bank of Nigeria (CBN) has clarified that the recent moves regarding regulatory forbearance is limited to limited banks.

A few days ago, the CBN issued a directive to banks in the country, particularly those in possible distress, prohibiting them from paying dividends to shareholders and issuing bonuses to directors.

This development led to the banking index recording losses over the last two days at the Nigerian Exchange (NGX) Limited.

In a statement on Wednesday, the central bank affirmed the strength of the Nigerian banking sector, noting that it issued routine transitional guidance for select institutions.

In the new circular, the apex bank clarified that it introduced time-bound measures for a small number of banks still completing their transition from the temporary regulatory support provided, mostly in response to the economic impact of the COVID-19 pandemic.

“This step is part of the CBN’s broader, sequenced strategy to implement the recapitalisation programme announced in 2023. The programme, designed to align with Nigeria’s long-term growth ambitions, has already led to significant capital inflows and balance sheet strengthening across the sector,” said the statement signed by Mrs Hakama Sidi Ali, the acting Director of Corporate Communications at CBN.

The CBN also noted that most banks have either completed or are on track to meet the new capital requirements well before the final implementation deadline of March 31, 2026.

“The measures announced apply only to a limited number of banks. These include temporary restrictions on capital distributions, such as dividends and bonuses, to support retention of internally generated funds and bolster capital adequacy. All affected banks have been formally notified and remain under close supervisory engagement,” it added.

The apex bank said to support a smooth transition, it has allowed limited, time-bound flexibility within the capital framework, consistent with international regulatory norms, adding that Nigeria generally maintains Risk-Based Capital requirements that are significantly more stringent than the global Basel III minimums.

“These adjustments reflect a well-established supervisory process consistent with global norms. Regulators in the U.S., Europe, and other major markets have implemented similar transitional measures as part of post-crisis reform efforts.”

“Nigeria’s banking sector remains fundamentally strong. These measures are neither unusual nor cause for concern; they are a continuation of the orderly and deliberate implementation of reforms already underway.

“The CBN will continue to take all necessary actions to safeguard the sector’s stability and ensure a robust, resilient financial ecosystem that supports sustainable economic growth,” parts of the statement affirmed.