Banks and telecommunications operators in Nigeria have resolved a four-year dispute over nearly N300bn owed for Unstructured Supplementary Service Data (USSD) services, with the debt now fully cleared, the Association of Licensed Telecommunications Operators of Nigeria (ALTON) announced.
ALTON Chairman Gbenga Adebayo disclosed the resolution on Thursday during an official visit to the Chairman of the Nigerian Communications Commission (NCC), Idris Olorunnimbe. He credited the NCC, led by Executive Vice Chairman Dr Aminu Maida, for bringing the long-standing dispute to a close.
Adebayo said that when Dr. Maida took office he inherited deep-seated industry challenges, most notably a USSD debt crisis that had ballooned to nearly N300 billion over four years and posed systemic risks to both the telecom sector and the wider digital finance ecosystem, but through coordinated engagement and firm regulatory leadership, the debt was cleared and the framework transitioned fully to end-user billing, effectively replacing what had been a looming threat with a more sustainable structure.
End in sight to years of dispute
The settlement ends years of disputes between banks and telecom operators, which had threatened the stability of Nigeria’s digital financial services. Adebayo praised the NCC for steering the telecom sector through this delicate period and highlighted last year’s approval of a 50 per cent USSD tariff as part of broader sector reforms.
Nigeria’s transition to an end-user billing (EUB) model in mid-2025 shifted USSD charges from bank accounts to mobile airtime, deducted directly by telecom operators. This move resolved the dispute, in which banks owed telcos up to N300bn in unpaid fees.
The EUB framework, developed by the NCC with support from the Central Bank of Nigeria, standardises billing, ensures transparency, and promotes financial inclusion for unbanked users reliant on USSD codes. Under the model, users are charged N6.98 per 120-second session, with consent prompts issued before each deduction. Banks no longer bill for USSD services, and safeguards prevent double-billing. Users may opt in or out, and banks must notify customers in advance of session charges.
The migration to EUB began between June 3 and 18, 2025, following partial debt repayments of N171bn. By February 19, 2026, the remaining debt was fully cleared, completing the rollout.
The transition allows for immediate airtime deductions and session notifications, similar to voice and SMS billing, giving users greater control. While some critics express concern about potential impacts on low-income users, the move strengthens telecom revenue sustainability and enhances the stability of Nigeria’s digital financial ecosystem.
