The long-standing dispute between Nigerian telecom operators and commercial banks over unpaid Unstructured Supplementary Service Data (USSD) fees is nearing resolution, with telecom companies recovering 95% of the estimated N180 billion owed.
Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), announced the progress during a virtual media briefing on Thursday. He confirmed that only three banks remain indebted, all of which have committed to structured repayment plans.
This development marks a crucial breakthrough in a five-year standoff that had threatened mobile banking services an essential channel for millions, especially in rural areas with limited internet access.
“The debt, which stood at about N180 billion as of January this year, has now been cleared up to 95 percent, with only three banks left to pay,” Adebayo stated, declining to name the remaining defaulters.
In parallel, ALTON has introduced a new “end-user billing” model. Under this system, customers will be charged directly from their mobile airtime for USSD sessions, rather than through deductions from their bank accounts. The standard charge remains N6.98 per 120-second session, and customers must opt in after receiving a prompt.
Migration to the new billing model is optional. Banks that choose to retain the traditional corporate billing system must have cleared all outstanding debts and commit to timely remittance of future fees.
“Those who want to stay with corporate billing can do so, provided they have settled their debts and will continue to pay operators promptly,” Adebayo explained.
The dispute dates back to 2019, when telecom operators accused banks of withholding payments for USSD services already delivered. By the end of 2024, operators had reportedly provided over N200 billion worth of USSD services without full compensation.
Despite threats to disconnect services, regulators intervened to maintain service continuity. In 2021, the Central Bank of Nigeria (CBN) and Nigerian Communications Commission (NCC) introduced a flat rate of N6.98 per USSD session to be collected by banks and paid to telcos, but enforcement remained uneven.
A joint directive in December 2024 mandated banks to pay 60% of outstanding debts by January 2, 2025, clear all prior dues by July 2, and settle 85% of new charges by year-end.
Adebayo disclosed that one major bank has successfully migrated to the new end-user billing system with positive trial results, and others are in the process of transitioning.
The National Association of Telecoms Subscribers welcomed the shift, with President Adeolu Ogunbanjo calling it a long-overdue reform that promotes transparency and ensures telcos receive rightful payments.
“Before now, banks would deduct money from our accounts but fail to remit it to the telcos. This move will solve that problem,” Ogunbanjo told journalists.
