MTN Recovers ₦32 Billion in USSD Fees

Out of the N74 billion that is still owed to the telecom provider for Unstructured Supplementary Service Data (USSD) service costs, MTN Nigeria has recouped N32 billion from Nigerian banks.

Customers can use USSD, a mobile banking platform, to conduct financial transactions like transfers, bill payments, and airtime purchases using SMS-based codes without needing internet access. The “implementation of end-user billing for USSD services at a flat fee of N6.98 per transaction conducted by Deposit Money Banks (DMBs) and all CBN-licensed institutions,” however, was the subject of a significant disagreement. Since 2020, there has been a standoff between the financial institutions and MNOs on appropriate charges and the invoicing procedure.

As banks refused to pay telecom carriers, the USSD service debt mounted, leading to regulatory action. The CBN and NCC released a circular in December 2024 mandating that banks pay down USSD debt. The circular required banks to agree to payment plans and reimburse a portion of unpaid invoices. Additionally, it ordered banks to halt lawsuits pertaining to the debt. Enforcing structured payments and averting more disagreements was the resolution.

Mobile Network Operators (MTN, Airtel, Globacom, and 9mobile) were authorized by the Nigerian Communications Commission (NCC) in January 2025 to disconnect the USSD codes of nine commercial banks, including First City Monument Bank (FCMB), Zenith Bank, Sterling Bank, Jaiz Bank, UBA, Polaris Bank, Unity Bank, Fidelity Bank, and Wema Bank.

The telecom regulator observed that, notwithstanding its two-week grace period, the nine financial institutions mentioned above were the only ones that had materially disregarded the instructions for paying unpaid payments owed to MNOs, some of which date back to 2020.

Although Nigerian telecom companies have been working tirelessly to get money back, their efforts have mostly failed. In the meantime, banks still bill their clients for using the USSD service even though they haven’t paid the telecom companies the full amount owed.

Although the retrieval of ₦32 billion shows some progress in settling the debt, the outstanding ₦42 billion, together with the obligations owed to other cellular carriers, demonstrates that the matter is far from addressed.

The upcoming months will be crucial in deciding whether the telecom industry can ultimately resolve this conflict or if another impasse is imminent, given the NCC and CBN’s close monitoring of the situation.