Banks, Telcos Adopt End-User Billing Framework,Settle N300bn USSD Debt
Commercial banks and telecommunications operators have resolved a long-running dispute over unpaid Unstructured Supplementary Service Data (USSD) fees, with nearly N300 billion in outstanding obligations fully cleared.
Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), Gbenga Adebayo, disclosed the development on Thursday during a visit to the Nigerian Communications Commission (NCC).
Adebayo said the debt, which accumulated over four years, had posed a systemic risk to the telecommunications industry and Nigeria’s digital financial ecosystem.
“When Maida assumed office, he inherited significant industry challenges,” Adebayo said.
“One of the most difficult was the USSD debt crisis, a debt burden that grew over four years to nearly N300 billion. It had become a systemic risk to our sector and the digital financial ecosystem.”
He commended Executive Vice-Chairman of the NCC, Aminu Maida, for coordinating regulatory engagement that led to the resolution.
Today, there is no outstanding USSD debt. The ecosystem has fully migrated to end-user billing. What was once a looming crisis has been converted into a sustainable framework,” he said.
Regulatory Intervention
The dispute between banks and telecom operators dates back several years, with telecom operators repeatedly threatening to suspend USSD services over mounting unpaid charges.
The impasse prompted regulatory intervention by the NCC and the Central Bank of Nigeria (CBN), culminating in the introduction of an end-user billing framework.
Under the new arrangement, USSD transaction charges are deducted directly from customers’ mobile airtime balances rather than being billed through banks.
Migration to the new billing structure was implemented between June 3 and June 18, 2025, following partial repayments estimated at about N171 billion by banks.
Industry stability
At the peak of the dispute in 2024, outstanding USSD obligations were estimated at between N250 billion and N300 billion, raising concerns about service disruptions and financial stability across the mobile banking ecosystem.
The resolution is expected to strengthen collaboration between banks and telecommunications companies while improving the sustainability of USSD-based financial services widely used by retail banking customers.
Industry stakeholders say the settlement removes a major operational risk and supports continued growth in digital banking and financial inclusion across Nigeria.
