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Telecommunications operators have confirmed that Deposit Money Banks (DMBs) have fully settled the estimated ₦300 billion owed for Unstructured Supplementary Service Data (USSD) services, bringing an end to a prolonged dispute that strained Nigeria’s digital financial ecosystem.
The announcement was made by the Association of Licensed Telecommunications Operators of Nigeria (ALTON) during an official visit to the Board Chairman of the Nigerian Communications Commission (NCC), Idris Olorunnimbe, in Lagos.
ALTON Chairman, Gbenga Adebayo, described the debt resolution as a major milestone for the sector. According to him, the crisis, which had lingered for over four years, posed a systemic risk to both the telecom industry and Nigeria’s broader digital financial services landscape.
He credited the breakthrough to the intervention of the NCC under its Executive Vice Chairman, Aminu Maida.
“When Dr. Maida assumed office, he inherited significant industry challenges. One of the most difficult was the USSD debt crisis, which grew to nearly ₦300 billion over four years. Through structured engagement and decisive coordination, this issue has now been fully resolved,” Adebayo said.
He confirmed that there is no longer any outstanding USSD debt and that the ecosystem has fully transitioned to an end-user billing model — a move aimed at ensuring long-term sustainability.
Migration to End-User Billing
Under the new framework, USSD session charges are now deducted directly from customers’ mobile airtime at ₦6.98 per 120 seconds, replacing the previous arrangement where banks deducted charges from customers’ accounts and remitted payments to telecom operators.
The migration followed the NCC’s Determination of USSD Pricing and Services, developed in collaboration with the Central Bank of Nigeria (CBN) and other stakeholders. The shift was conditional upon banks clearing outstanding debts.
ALTON had previously disclosed that 95 percent of the debt had been cleared, with three banks negotiating instalment payments before the final settlement was achieved.
Tariff Review and Sector Stability
Adebayo also highlighted the approval of a 50 percent tariff adjustment in 2025 as another turning point for the industry. For 13 years, telecom tariffs remained static despite rising inflation, currency volatility, infrastructure costs, and escalating energy expenses.
“Our tariffs had fallen below cost, investments slowed, and networks became strained. Service rationing was becoming a real possibility,” he noted.
The tariff review, he said, has helped restore profitability, stabilise networks, and revive capital expenditure planning across the sector.
Call for Infrastructure Protection
During the meeting, Olorunnimbe reiterated the Commission’s commitment to protecting telecom infrastructure, warning that enforcement of Critical National Infrastructure protections must remain strict and non-negotiable.
He assured operators of open communication channels with the regulator and pledged continued support to ensure the sustainability of a sector that has remained a flagship contributor to Nigeria’s economy for over two decades.
Despite progress, operators continue to grapple with persistent fibre cuts nationwide and what ALTON described as “multiple and excessive” taxes and levies imposed by various state authorities.
With the USSD debt crisis resolved and billing reforms fully implemented, stakeholders say the focus now shifts to strengthening regulatory collaboration and ensuring long-term resilience in Nigeria’s telecom and digital finance ecosystem.
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