MTN Nigeria has secured a partial victory in its prolonged dispute over Unstructured Supplementary Service Data (USSD) debts, recovering N32 billion from Nigerian banks. However, a significant N42 billion remains unpaid, underscoring the ongoing friction between financial institutions and telecom operators.

Regulatory Directive Spurs Payment

The payment follows a directive from the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC), which mandated banks to clear outstanding USSD debts in a phased manner. According to MTN Nigeria’s Q5 financial statement, the circular outlined strict timelines for debt settlement:

Pre-API invoices: Banks must pay 60% of all outstanding charges as final settlement by July 2, 2025.

Post-API invoices: Financial institutions are required to clear 85% of debts accumulated after the February 2022 API implementation by December 31, 2024.

Future invoices: All transactions must be settled within one month of issuance.

In compliance with this directive, banks paid N32 billion to MTN on December 31, 2024, marking a step toward resolving the lingering dispute.

The USSD Dispute: A Long-Running Standoff

USSD technology allows mobile banking services without internet access, enabling transactions such as transfers and bill payments via SMS-based codes. However, a dispute erupted over a flat fee of N6.98 per transaction, which Deposit Money Banks (DMBs) and other financial institutions were required to pay telecom operators.

Since 2020, banks have withheld payments, leading to an escalating debt crisis. In response, the CBN and NCC intervened in December 2024, issuing a circular compelling banks to honor their debts and halt any legal challenges against telecom operators.

Telcos Take Drastic Action

Despite regulatory pressure, compliance has been inconsistent. In January 2025, the NCC approved major telecom operators, including MTN, Airtel, Globacom, and 9mobile, to disconnect USSD services for nine defaulting banks. These included:

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 dating back to 2020.

What’s Next?

The partial repayment signals progress, but the unresolved N42 billion debt suggests that tensions remain high. The coming months will reveal whether financial institutions comply fully with the settlement directive or if further regulatory enforcement will be necessary.

For now, while MTN has recouped a fraction of its dues, the USSD debt saga is far from over.