Nigerian Banks USSD Debt dispute ends as nearly N300bn is fully repaid, stabilising the telecom and digital finance ecosystem

Nigerian banks have fully cleared nearly N300bn owed to telecommunications operators for Unstructured Supplementary Service Data services, ending a four-year dispute that had threatened the stability of the country’s digital financial ecosystem.

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The Chairman of the Association of Licensed Telecommunications Operators of Nigeria, Gbenga Adebayo, announced the resolution on Thursday during an official visit to the Chairman of the Nigerian Communications Commission, Idris Olorunnimbe, in Abuja.

Gbenga Adebayo credited the intervention of the Nigerian Communications Commission, led by its Executive Vice Chairman, Dr Aminu Maida, with resolving what he described as a systemic risk to the sector.

“When Dr Maida assumed office, he inherited significant industry challenges,” Gbenga Adebayo said. “One of the most difficult was the USSD debt crisis, a debt burden that grew over four years to nearly N300bn. 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. Today, there is no outstanding USSD debt. The ecosystem has fully migrated to end-user billing.”

The clearing of the Nigerian Banks USSD Debt concludes years of tension between commercial banks and telecom operators, including MTN Nigeria and Airtel Nigeria, over unpaid service fees. At its peak in 2024, the debt was estimated at between N250bn and N300bn.

The breakthrough followed sustained regulatory engagement involving the Nigerian Communications Commission and the Central Bank of Nigeria, which jointly developed the End-User Billing framework to standardise USSD charges and improve transparency.

Under the new arrangement, which took full effect in mid-2025, USSD charges are deducted directly from customers’ mobile airtime rather than from bank accounts.

The tariff is set at N6.98 per session lasting up to 120 seconds, with consent prompts issued before each deduction. Banks no longer bill customers for USSD services, while telecom operators manage the charges exclusively under regulatory safeguards designed to prevent double-billing.

Migration to the End-User Billing model began between 3 June and 18 June 2025 after partial repayments of N171bn by banks. By 19 February 2026, the outstanding balance had been fully settled, marking a decisive turning point for the industry.

Industry stakeholders said the resolution strengthens revenue predictability for telecom operators while safeguarding consumer choice, as users retain the option to opt in or out of USSD services. Banks are also required to notify customers in advance of applicable session charges.

Although some consumer advocates have expressed concern about the impact of airtime deductions on low-income users, regulators maintain that the framework enhances transparency and financial inclusion, particularly for unbanked Nigerians who rely heavily on USSD codes for basic transactions.

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Observers describe the settlement of the Nigerian Banks USSD Debt as a milestone that restores stability to one of the most critical pillars of Nigeria’s digital economy.