ABUJA, NIGERIA — A major systemic risk to Nigeria’s digital economy has been averted as commercial banks and telecommunications operators (Telcos) have successfully resolved their four-year dispute over unpaid Unstructured Supplementary Service Data (USSD) fees.
The Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), Gbenga Adebayo, announced the landmark resolution during a strategic visit to the Nigerian Communications Commission (NCC) headquarters in Abuja. According to Adebayo, the outstanding debt, which peaked at nearly ₦300 billion, has now been fully cleared.
A 4-Year Standoff Resolved The crisis, which began in 2019, saw the debt grow from ₦42 billion in 2021 to a staggering ₦300 billion by late 2025. Telcos had repeatedly threatened to withdraw USSD services, which would have crippled mobile banking for millions of Nigerians who rely on codes like *919# or *737# for daily transactions.
Adebayo credited the Executive Vice-Chairman of the NCC, Dr. Aminu Maida, for providing the leadership required to break the deadlock. “When Dr. Maida assumed office, he inherited a debt burden that had become a systemic risk to the sector. Today, that crisis is behind us. There is no outstanding USSD debt,” Adebayo stated.
The New Billing Framework To ensure this crisis does not repeat, the ecosystem has fully migrated to an End-User Billing (EUB) framework.
- How it works now: Banks no longer owe Telcos for the service. Instead, the USSD transaction fee (currently ₦6.98) is deducted directly from the user’s mobile airtime or bank account at the point of transaction.
- Transition period: This migration was finalized between June 2025 and early 2026, following a series of partial repayments by the banks.
Impact on Consumers For the average Nigerian, this resolution means a more stable mobile banking experience. The era of “Service Unavailable” messages caused by Telco-Bank friction is officially over. However, users should be aware that the ₦6.98 charge per transaction remains the standard cost for the convenience of using USSD codes.
Timeline of the Crisis (2019 – 2026)
- 2019: Telcos propose a ₦4.50 charge; Banks refuse.
- 2021: Debt hits ₦42 billion. Minister Isa Pantami intervenes to stop a service shutdown.
- 2023: Debt climbs to ₦200 billion.
- 2024: Outstanding obligations reach ₦300 billion.
- 2026: ALTON confirms full debt settlement and successful migration to end-user billing.