MTN Nigeria has successfully recovered N32 billion from commercial banks as part of a long-standing debt dispute over Unstructured Supplementary Service Data (USSD) charges, according to its Q5 2024 financial statement. However, N42 billion of the total N74 billion owed remains outstanding, underscoring unresolved tensions between telecom operators and financial institutions.
Regulatory Intervention Drives Partial Payment
The recovery follows a December 2024 directive by the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC), mandating banks to settle 60% of pre-API invoices by July 2025 and 85% of post-API invoices by December 2024. Future invoices must now be paid within one month of issuance.
MTN confirmed receiving the N32 billion payment on 31 December 2024, citing compliance with the joint CBN-NCC circular. Despite this progress, the telecom giant emphasized that banks still owe N42 billion, raising concerns about full adherence to the regulatory timeline.
Background: The USSD Fee Dispute
USSD, a critical mobile banking platform enabling transactions via SMS-based codes (e.g., *737#), became a flashpoint in 2020 when telecom operators and banks clashed over billing methods. Telcos demanded a flat fee of N6.98 per transaction from financial institutions, arguing that banks—not end-users—should bear the cost. Banks resisted, leading to accumulated debts and regulatory intervention.
The standoff escalated in January 2025 when the NCC authorized MTN, Airtel, Globacom, and 9mobile to disconnect nine non-compliant banks, including First Bank, Zenith Bank, and UBA, for failing to settle debts dating back to 2020. While most institutions later negotiated payments, the nine banks faced temporary service suspensions.
Lingering Challenges and Implications
The partial settlement marks a milestone in the four-year dispute but highlights systemic issues in Nigeria’s fintech ecosystem. Analysts warn that unresolved debts could strain telecom operators’ finances, potentially impacting service quality and infrastructure investments.
MTN’s financial statement noted: “While we appreciate the progress, sustained collaboration between regulators, banks, and telcos is critical to prevent future disputes.”
What’s Next?
With N42 billion still owed, banks face mounting pressure to meet the July 2025 deadline for pre-API invoices. The NCC has reiterated its commitment to enforcing compliance, threatening further sanctions for delays.
Stakeholders are cautiously optimistic, but the telecom sector’s ability to recover full payments—and maintain seamless USSD services for millions of Nigerians—hinges on banks’ adherence to the structured settlement plan.
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