MTN Nigeria has received N32b from deposit money banks as part of a partial settlement of the long-standing unstructured supplementary service data debt dispute, following a directive from the Central Bank of Nigeria and the Nigerian Communications Commission.
The payment, disclosed in MTN’s financial report for the period ending December 31, 2024, marks a significant breakthrough in resolving an impasse that dates back to 2019, when banks and telecom operators first clashed over unpaid USSD service charges.
“On December 20, 2024, the Central Bank of Nigeria and the Nigerian Communications Commission issued a joint circular to resolve the long-standing USSD debts impasse between Deposit Money Banks and Mobile Network Operators,” MTN said in the report.
“Following this directive, on December 31, 2024, MTN received an N32bn payment from the banks out of the N74bn referenced in the CBN and NCC circulars.”
The USSD debt crisis originated from the adoption of end-user billing, a model introduced by the CBN in 2021, which set a flat fee of N6.98 per USSD transaction.
Under this framework, banks were expected to charge customers directly for USSD-based banking services and remit payments to telecom operators.
However, financial institutions struggled to settle outstanding invoices, leading to an accumulated industry-wide debt that peaked at N160bn.
Despite the rising debts, telecom operators refrained from suspending USSD services, preventing a disruption that could have impacted millions of Nigerians who rely on the platform for essential transactions—including fund transfers, airtime purchases, and bill payments—especially in areas with limited internet connectivity.
The latest progress in debt repayment follows regulatory intervention, with the CBN and NCC issuing a joint circular on December 20, 2024, outlining a structured three-phase settlement plan.
The directive requires banks to pay 60 per cent of all outstanding pre-API invoices by January 2, 2025, clear the remaining balance by July 2, 2025, and settle 85 percent of post-API invoices issued from February 2022 by December 31, 2025.
Earlier, the Chairman of the Association of Licensed Telecommunications Operators of Nigeria, Gbenga Adebayo, confirmed at a CEO forum in Lagos that the situation had been de-escalated.
“The matter has been de-escalated. Money has been paid, and we are making progress thanks to the regulators,” Adebayo said in January.
The regulators had also published the names of the nine banks that risked disconnection from USSD services due to indebtedness.
The banks included Fidelity Bank Plc, First City Monument Bank, Jaiz Bank Plc, Polaris Bank Limited, Sterling Bank Limited, United Bank for Africa Plc, Unity Bank Plc, Wema Bank Plc, and Zenith Bank Plc.
With the latest payment, the banks have made substantial progress in clearing their liabilities, ensuring continued access to the USSD platform—which remains vital for financial inclusion by enabling digital transactions for millions of customers without internet access.
The phased repayment plan is expected to clear the remaining debts while sustaining uninterrupted USSD services for bank customers across the country.