MTN recovers N32 billion from banks amid long-standing USSD debt dispute 

However, N42 billion remains unpaid, highlighting the lingering tensions in the protracted dispute between banks and telecom companies.

According to MTN Nigeria’s Q5 financial statement, the circular specified that:

“The directive from CBN and NCC requires sixty percent (60%) of all pre-API invoices to be paid as full and final settlement by 2 July 2025 while for post-API invoices the DMBs are required to pay 85 percent (85%) of outstanding invoices issued after the February 2022 implementation of APIs by 31 December 2024. In addition, future invoices are to be settled within one month of issuance. 

Based on this directive, on 31 December 2024 MTN received N32 billion payment from the banks out of the N74 billion in CBN and NCC circulars to banks,” they stated.

USSD is a mobile banking platform that enables customers to perform financial transactions such as transfers, bill payments, and airtime purchases via SMS-based codes without requiring internet access. However, a major dispute arose over the “implementation of end-user billing for USSD services at a flat fee of N6.98 per transaction conducted by Deposit Money Banks (DMBs) and all CBN-licensed institutions.”  

In January 2025, the Nigerian Communications Commission (NCC) granted approval to Mobile Network Operators, including MTN, Airtel, Globacom, and 9mobile, to disconnect the USSD codes of nine commercial banks which included First City Monument Bank (FCMB), Zenith Bank, Sterling Bank, Jaiz Bank, UBA, Polaris Bank, Unity Bank, Fidelity Bank, and Wema Bank.

The telecom regulator noted that after its two weeks’ grace, out of a total of 18 financial institutions, the 9 institutions listed above were the only ones that have failed to comply significantly with the directives for the settlement of outstanding invoices due to MNOs, some since 2020.

The partial payment to MTN signals progress in resolving the USSD dispute, but the remaining debt indicates that challenges persist.

The coming months will determine how effectively banks comply with the settlement directive and whether the regulatory intervention fully resolves the issue.