MTN Nigeria recovers N32bn in USSD debt, banks still owe N42bn

MTN Nigeria has successfully recovered N32 billion from Nigerian banks as part of the N74 billion outstanding debt for Unstructured Supplementary Service Data (USSD) services.

However, a N42 billion balance remains unpaid, underscoring ongoing tensions in the long-standing dispute between telecom operators and financial institutions.

According to MTN Nigeria’s Q5 financial statement, the recovery follows regulatory intervention from the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC), which mandated banks to settle their USSD obligations.

The CBN-NCC directive, as outlined in MTN’s financial report, specifies that: 60% of all pre-API invoices must be settled as a final payment by July 2, 2025.

85% of post-API invoices (issued after the February 2022 implementation of APIs) must be settled by December 31, 2024.

All future USSD invoices must be paid within one month of issuance.

Following this directive, MTN confirmed receiving N32 billion from banks by December 31, 2024, but a N42 billion debt remains unresolved.

USSD is a mobile banking technology that enables users to perform financial transactions, transfers, bill payments, and airtime purchases without internet access.

The dispute between Deposit Money Banks (DMBs) and Mobile Network Operators (MNOs) arose over the billing structure, particularly the implementation of a flat N6.98 charge per transaction.

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Banks and telecom firms have clashed over payment obligations since 2020, leading to an accumulation of unpaid debts. Financial institutions withheld payments to telecom operators, prompting regulatory intervention.

In December 2024, the CBN and NCC issued a directive mandating banks to: Pay outstanding USSD invoices. Adhere to structured repayment plans. Halt any legal actions related to the debt. Telecom Operators Enforce Disconnections

In January 2025, following non-compliance by certain banks, the Nigerian Communications Commission (NCC) granted approval for MNOs, including MTN, Airtel, Globacom, and 9mobile, to disconnect the USSD codes of nine commercial banks due to non-payment. These banks included: First City Monument Bank (FCMB); Zenith Bank; Sterling Bank; Jaiz Bank; United Bank for Africa (UBA); Polaris Bank; Unity Bank; Fidelity Bank and Wema Bank

The NCC stated that, out of 18 financial institutions, these nine banks had failed to comply significantly with the settlement directive, with some debts dating as far back as 2020.

While the N32 billion payment represents progress, the remaining N42 billion debt signals persistent challenges. The next few months will determine whether banks comply fully with the CBN-NCC directive and whether regulatory intervention ultimately resolves the dispute.

Telecom operators, financial institutions, and regulators will continue negotiations to prevent future disputes and ensure a seamless USSD service for millions of Nigerian banking customers.