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BREAKING: Banks, Telcos Settle N300bn USSD Debt After Four-Year Feud

USSD

Nigeria’s banks and telecom operators have resolved a protracted four-year dispute over nearly N300 billion in unpaid Unstructured Supplementary Service Data (USSD) fees, with all debts now cleared.

BREAKING: Banks, Telcos Settle N300bn USSD Debt After Four-Year Feud

Banks

The Association of Licensed Telecommunications Operators of Nigeria (ALTON) confirmed the settlement, crediting decisive intervention by the Nigerian Communications Commission (NCC).

ALTON Chairman Gbenga Adebayo announced the breakthrough Thursday during a visit to NCC Chairman Idris Olorunnimbe, praising Executive Vice Chairman Dr Aminu Maida’s leadership. “When Dr Maida took office, he faced a USSD debt crisis nearing N300bn after four years—a systemic threat to telecoms and digital finance,” Adebayo stated.

Read Also: ALTON and NCC Launch Industry Compliance Forum to Prepare Telecoms for 2026 Tax Reforms

He noted NCC’s structured engagements shifted the ecosystem to end-user billing (EUB), eliminating outstanding liabilities and ensuring sustainability.

The EUB framework, rolled out mid-2025 with Central Bank of Nigeria support, charges users N6.98 per 120-second session deducted from airtime—with consent prompts—replacing bank billing. Migration occurred June 3–18, 2025, after N171 billion partial repayments; full clearance came by February 19, 2026.

Key features include telco-direct deductions, opt-in/out options, advance notifications, and safeguards against double-billing, enhancing transparency for unbanked users reliant on USSD *737# or *904# codes.

Read Also: Telecom Operators Receive ₦160 Billion USSD Debt Settlement from Banks

Adebayo hailed the 50 percent USSD tariff approval last year and NCC’s crisis navigation as pivotal for sector stability. The resolution ends mutual accusations between MTN, Airtel, and banks, bolstering financial inclusion while addressing revenue predictability concerns. Critics note potential airtime burdens for low-income users, but proponents see it fortifying Nigeria’s digital economy.

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Frank
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Franklin Ugo Ndibe is a seasoned Nigerian journalist and media professional renowned for his incisive reporting and editorial leadership in the information and communications technology (ICT) sector.

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