By Ayomide Otitoju
MTN Nigeria has achieved a partial resolution in its prolonged dispute over Unstructured Supplementary Service Data (USSD) debts, successfully recovering N32 billion from Nigerian banks. However, a substantial N42 billion remains unpaid, reflecting the ongoing tensions between telecom operators and financial institutions.
The payment follows a directive from the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC), which instructed banks to settle outstanding USSD debts in a phased manner. According to MTN Nigeria’s Q5 financial statement, the circular outlined stringent timelines for debt clearance:
Post-API invoices: Financial institutions must pay 85% of debts accrued after the February 2022 API implementation by December 31, 2024.
Future invoices: Banks are required to settle all transactions within one month of issuance.
In compliance with these directives, banks paid N32 billion to MTN on December 31, 2024, marking a significant step towards resolving the financial impasse.
The USSD Dispute: A Longstanding Battle
USSD technology facilitates mobile banking without internet access, enabling users to conduct transactions such as transfers and bill payments through SMS-based codes. However, a dispute emerged over the N6.98 flat fee per transaction that Deposit Money Banks (DMBs) were required to remit to telecom operators.
Since 2020, banks have withheld payments, resulting in an escalating debt crisis. In response, the CBN and NCC intervened in December 2024, issuing a circular mandating banks to clear their debts and suspend any legal challenges against telecom operators.
Regulatory Crackdown and Bank Disconnections
Despite regulatory intervention, compliance has remained inconsistent. In January 2025, the NCC granted major telecom operators, including MTN, Airtel, Globacom, and 9mobile, approval to disconnect USSD services for nine defaulting banks, namely:
First City Monument Bank (FCMB)
Zenith Bank
Sterling Bank
Jaiz Bank
United Bank for Africa (UBA)
Polaris Bank
Unity Bank
Fidelity Bank
Wema Bank
The NCC stated that despite a two-week grace period, these banks failed to make significant payments, some of which date back to 2020.
While the partial repayment represents progress, the unresolved N42 billion debt suggests that tensions persist. The coming months will determine whether financial institutions fully comply with the settlement directive or if additional regulatory measures will be required.
