Banks fully repay N300bn USSD debts to MTN, Airtel, Glo others

Nigerian commercial banks have completely repaid a N300 billion long-standing debt for Unstructured Supplementary Service Data (USSD) services to telecoms operators. The development marks the end of an impasse that has lasted for about five years.

This was disclosed by the Chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON) during a visit to the Chairman of the Nigerian Communications Commission (NCC), Idris Olorunnimbe.

During his address, Mr Adebayo noted that the N300 billion has now been fully paid. He also appreciated the efforts of the NCC’s EVC, Dr Aminu Maida, on his strategic intervention and leadership towards resolving the issue.

He acknowledged his engagement to ensure that the industry migrates to end-user billing. 

“When Dr Maida assumed office, he inherited significant industry challenges. One of the most difficult was the USSD debt crisis, a debt burden that grew over four years to nearly N300 billion. It had become a systemic risk to our sector and the digital financial ecosystem,” he said. 

Gbenga Adebayo

For years, both telcos and deposit money banks have battled to settle the outstanding N300 billion USSD payment. At some point, the telcos threatened to withdraw the USSD services from about 18 banks over pending payments.

However, the prolonged issue took new turns when the NCC and Central Bank of Nigeria intervened to settle the dispute with new frameworks that set how payments will be made. 

The ALTON Chairman noted that the 50% telecoms tariff hike approval marked a turning point for the industry and will restore operational excellence for the operators. 

While responding, the NCC Chairman, Olurunnimbe, said the commission will implement all plans to ensure the sector continues to work for both players and the country. He noted that more efforts will be made to improve the channel of communication between regulators and those being regulated. 

“In fact, we will widen them so that we can hear you better and react faster. So, those issues concern us as well. And we will continue to deepen the workings,” he added.

Also Read: NCC: MNOs, Banks refund N10 billion to customers for failed transactions.

Telcos’ big gain from NCC’s end-user billing system 

The end-user billing system represents an attempt by NCC to prevent any future clash owing to the now-paid N300 billion USSD debt issue between telcos and commercial banks. 

Introduced in June 2025, the new billing system USSD fees are deducted directly from users’ mobile airtime balance, as opposed to the previous case where the fee was charged directly from customers’ bank accounts. 

Under the new structure, each USSD session attracts a charge of N6.98 per 120 seconds and is billed by mobile network operators. 

During the process, customers will receive a consent prompt at the start of each session, while the airtime will be deducted subject to confirmation and availability of the bank’s services. Customers also have the option to discontinue the use of the USSD channels anytime they wish to opt out.

While commenting on the end-user billing system, Adebayo assured that the change would not affect USSD banking services availability, and customers could continue using bank USSD codes with sufficient airtime.

He addressed this in line with the essential services. 

USSD service has been a banking alternative for users due to its usage without the need for an internet connection. It has been a vital service, enabling customers to conduct banking transactions anywhere in Nigeria.

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