Nigeria’s banking and telecommunications sectors have drawn a curtain on a four-year dispute over nearly N300 billion in unpaid Unstructured Supplementary Service Data (USSD) fees, marking a major leap in the country’s business landscape.
The resolution was announced recently by the Association of Licensed Telecommunications Operators of Nigeria (ALTON) during an official visit to the Nigerian Communications Commission’s leadership.
ALTON Chairman Gbenga Adebayo said the long-running debt crisis had posed serious challenges for telecom operators and threatened the stability of Nigeria’s digital financial ecosystem. According to him, when the NCC’s Executive Vice Chairman, Dr. Aminu Maida, assumed office, the USSD debt had already ballooned to nearly N300 billion over four years.
He noted that through coordinated engagement among regulators, banks, and telecom operators, the outstanding debt has now been fully cleared. The development effectively ends years of disagreement over unpaid service charges.
The breakthrough followed Nigeria’s transition to an End-User Billing (EUB) model in mid-2025. Under the former structure, banks were responsible for settling USSD charges with telecom operators. However, disputes over payments led to the accumulation of the massive debt.
Under the new EUB framework, USSD charges are deducted directly from customers’ mobile airtime rather than their bank accounts. This change removes banks from the billing chain and ensures telecom operators receive payment instantly.
The framework was developed by the NCC with the support of the Central Bank of Nigeria to improve transparency and standardise the billing process. It is also aimed at supporting financial inclusion, especially for Nigerians who depend on USSD services for everyday banking transactions.
Customers are now charged N6.98 per 120-second USSD session, with consent prompts issued before deductions are made. Safeguards have been introduced to prevent double-billing, and users have the option to opt in or out of the service. Banks are also required to notify customers in advance about session charges.
Migration to the EUB model began between June 3 and June 18, 2025, after partial repayments of N171 billion were made. By February 19, 2026, the remaining balance had been settled, completing the full rollout of the new system.
Industry stakeholders say the transition strengthens revenue stability for telecom operators and reduces systemic risks within Nigeria’s digital payments space. Although some concerns have been raised about the impact on low-income users, regulators insist the new model offers greater clarity, transparency, and user control.
With the N300 billion dispute now resolved, both sectors are expected to operate on a more stable footing, paving the way for improved collaboration in Nigeria’s growing digital economy.
