Telecommunications giant, MTN Nigeria recovers ₦32 billion from USSD debt, yet owes an additional ₦42 billion
Nigeria's USSD Debt Saga: A Long-Running Dispute Between Telecom Operators and Banks Nearly Resolved
The telecom sector in Nigeria is on the brink of resolving a long-standing dispute over USSD service debts, with banks reportedly having paid 95% of the outstanding ₦180 billion[3]. This dispute, which dates back to 2019, has been a source of contention between telecom operators and banks over the fees charged for financial transactions via USSD.
The unpaid ₦42 billion USSD service debt for MTN Nigeria, along with debts owed to other telecom operators, has been a significant issue for the sector. In 2021, telecom operators threatened to disconnect USSD services, but the Nigerian Communications Commission (NCC) intervened to prevent any service disruption[1].
To address the issue, a regulatory intervention led by the Nigerian Minister for Communications and Digital Economy, supported by the Central Bank of Nigeria (CBN) and the NCC, resulted in a new charging framework in March 2021. Under this framework, financial transactions through USSD at deposit money banks are charged a flat fee of ₦6.98 per transaction[1].
The new agreement was reached among Mobile Network Operators (MNOs), including MTN Nigeria, deposit money banks, and regulators. It aims to promote affordability and improve financial inclusion via USSD, a vital service for underserved Nigerians[1]. The CBN and NCC continue to engage stakeholders to refine access and pricing[1].
Regarding MTN Nigeria’s financials, the company’s latest statements from June 2025 indicate sustained liabilities but do not specify separate USSD debts, consistent with the broader industry resolution and settlements that have mostly cleared outstanding balances[2].
Other telecom operators, including Airtel, GLO, and 9mobile, are also awaiting settlements. The CBN set a payment deadline of January 2, 2025, for the remaining debts[1]. The NCC warned that any bank failing to remit the charges by January 27, 2025, would have its USSD codes deactivated and reassigned to other businesses[1].
The unresolved USSD debt played a role in MTN Nigeria's ₦400.4 billion loss after tax for the fiscal year ending December 31, 2024[1]. The NCC and CBN are actively monitoring the situation to determine whether the telecom sector can finally put this dispute to rest or if another standoff is on the horizon.
Key Points:
- Initial USSD debt estimate: Approximately ₦180 billion total
- Banks’ settlement status: 95% of the USSD debt settled; 3 banks owe balance[3]
- New pricing framework: Flat fee of ₦6.98 per USSD transaction since March 16, 2021[1]
- Regulatory actions: Minister-led stakeholder meeting; CBN and NCC framework and ongoing engagement[1]
- MTN Nigeria's status: No specific unresolved USSD debt reported post-settlement[2]
- Dispute timeline: Began in 2019 when banks continued deducting charges from customers for USSD services without remitting the corresponding fees to the telecom providers.
- NCC's intervention: Multiple instances to prevent service disruptions due to unpaid USSD service debts.
- CBN's payment deadline: January 2, 2025, for the remaining debts.
- NCC's penalty for non-compliance: USSD codes deactivation and reassignment to other businesses if charges are not remitted by January 27, 2025.
- Impact on MTN Nigeria's finances: ₦400.4 billion loss after tax for the fiscal year ending December 31, 2024, due to the unresolved USSD debt.
The ongoing resolution of the USSD debt saga in Nigeria's telecom sector involves discussions about finance, as the unpaid USSD service debt for MTN Nigeria, amounting to ₦42 billion, is one of the significant issues at hand. The disputed fees charged for financial transactions via USSD between telecom operators and banks have been a major point of contention in this long-running dispute.
