Nigerian banks and telecommunications operators have resolved a four-year dispute over nearly N300 billion (about US$185 million) in unpaid Unstructured Supplementary Service Data (USSD) fees, marking the end of one of the most protracted standoffs in the country’s digital finance sector.
The Association of Licensed Telecommunications Operators of Nigeria (ALTON) confirmed on Thursday that the debt has now been fully cleared.
ALTON Chairman Gbenga Adebayo announced the breakthrough during an official visit to the head of the Nigerian Communications Commission (NCC), Idris Olorunnimbe, crediting the NCC’s Executive Vice Chairman Aminu Maida with bringing the long-standing issue to a close.
“When Dr. Maida assumed office, he inherited significant industry challenges,” Adebayo said. “One of the most difficult was the USSD debt crisis, a debt burden that grew over four years to nearly N300 billion (about US$185 million). It had become a systemic risk to our sector and the digital financial ecosystem.”
“Through firm leadership, structured engagement and decisive coordination, Dr. Maida and his team resolved this issue,” he added.
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USSD technology enables mobile users to access banking services without internet connectivity, making it a cornerstone of financial inclusion in Africa’s most populous nation. Millions of Nigerians rely on USSD codes for transfers, bill payments and balance checks, especially in rural and low-income communities.
The dispute stemmed from disagreements between banks and telecom operators, including MTN Nigeria and Airtel Nigeria, over revenue-sharing from USSD sessions. By 2024, unpaid fees had ballooned to roughly N250 billion–N300 billion (about US$155 million–US$185 million), threatening disruption of services.
Regulatory intervention by the NCC, alongside the Central Bank of Nigeria, led to the development of an End-User Billing (EUB) framework designed to standardise charges and improve transparency.
Under the EUB model, introduced in mid-2025, USSD charges are deducted directly from customers’ mobile airtime rather than bank accounts. Telecom operators now bill users N6.98 (about $0.0043) per session lasting up to 120 seconds, with a consent prompt issued before each deduction.
Banks no longer handle USSD billing, eliminating disputes over unpaid fees. Regulatory safeguards also prevent double-billing, while users may opt in or out of the service and must be notified in advance of charges.
Migration to the EUB system began between June 3 and 18, 2025, following partial repayments totalling N171 billion (about US$105 million). By February 19, 2026, banks had fully cleared the remaining balance, according to ALTON.
Adebayo described the shift as a milestone that has transformed a looming crisis into a predictable framework for both telecom operators and digital finance providers.
“Today, there is no outstanding USSD debt. The ecosystem has fully migrated to end-user billing,” he said.
Industry analysts say the resolution strengthens revenue certainty for telecom operators while preserving access to essential digital banking services. Some consumer advocates have raised concerns that shifting charges to airtime could disproportionately affect low-income users who depend heavily on USSD transactions.
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However, regulators argue that the framework enhances accountability and ensures continuity of service, reducing the risk of sudden disruptions.
The end of the dispute removes a major source of friction between two of Nigeria’s most influential industries and stabilises a critical component of the country’s fast-growing digital economy.
