Industry shifts fully to end-user billing after regulatory intervention…
Commercial banks and telecommunications operators have finally resolved their long-running dispute over unpaid Unstructured Supplementary Service Data (USSD) charges, with nearly N300 billion in accumulated debt now fully settled.
The breakthrough was announced by Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), during a visit to the Nigerian Communications Commission (NCC) on Thursday.
According to Adebayo, the four-year debt overhang had grown into a major systemic risk for both the telecom sector and Nigeria’s fast-expanding digital financial ecosystem.
“When Maida assumed office, he inherited significant industry challenges,” Adebayo said, referring to Aminu Maida, Executive Vice Chairman of the NCC. “One of the most difficult was the USSD debt crisis, a burden that grew over four years to nearly N300 billion.”
He credited the NCC’s leadership for steering structured negotiations that ultimately resolved the impasse.
“Today, there is no outstanding USSD debt. The ecosystem has fully migrated to end-user billing. What was once a looming crisis has been converted into a sustainable framework,” he added.
How the Dispute Escalated
The standoff between banks and mobile network operators dates back to 2019, when telcos argued they could no longer sustain USSD services without direct compensation. They proposed taking N4.50 per 20 seconds from charges paid by customers, a move banks resisted, warning it would significantly increase transaction costs.
By March 2021, operators threatened to suspend USSD services over N42 billion in unpaid fees. The move was halted following intervention by the then Minister of Communications and Digital Economy, Isa Pantami.
Shortly after, banks and telecom operators agreed to a revised charge of N6.98 per USSD transaction. However, the debt continued to balloon:
- November 2022: N80 billion
- May 2023: N120 billion
- November 2023: N200 billion
- 2024 peak: Estimated between N250 billion and N300 billion
The escalating obligations triggered fresh regulatory involvement from both the NCC and the Central Bank of Nigeria (CBN).
End-User Billing Framework
The crisis was ultimately resolved through the introduction of an End-User Billing (EUB) framework. Under the new arrangement, USSD transaction fees are deducted directly from customers’ mobile airtime rather than being billed through banks.
Migration to the new billing structure occurred between June 3 and June 18, 2025, following partial repayments of N171 billion by banks — a move that paved the way for full reconciliation of outstanding balances.
What It Means for the Sector
The resolution removes a major source of friction between two critical pillars of Nigeria’s digital economy: financial institutions and telecom operators.
USSD remains a vital channel for millions of Nigerians, particularly those without smartphones or consistent internet access, to access banking services. The prolonged dispute had raised fears of service disruptions that could have undermined financial inclusion efforts.
With the debt cleared and a new billing framework in place, industry stakeholders say the focus can now shift toward improving service quality, expanding digital access, and strengthening collaboration between banks and telecom operators.
After four years of tension, negotiations and regulatory firefighting, one of the most contentious issues in Nigeria’s digital finance landscape appears to have finally been laid to rest.
About the Author
