Nigeria’s banking and telecommunications sectors have officially resolved a four-year dispute over nearly N300 billion in unpaid Unstructured Supplementary Service Data (USSD) fees, bringing stability to the country’s digital financial ecosystem.
The resolution was confirmed by the Association of Licensed Telecommunications Operators of Nigeria (ALTON) during a meeting with the Nigerian Communications Commission (NCC) leadership. ALTON Chairman Gbenga Adebayo revealed that when Dr. Aminu Maida assumed office as NCC Executive Vice Chairman, the USSD debt had accumulated to almost N300 billion over four years, creating financial strain for telecom operators.
Brandspur Banking News Desk reports that the resolution follows Nigeria’s mid-2025 transition to an End-User Billing (EUB) model. Under the previous system, banks were responsible for settling USSD charges with telecom providers, but disputes and payment delays led to the massive debt accumulation. The new framework shifts USSD fees directly to customers’ mobile airtime, eliminating banks from the billing chain and ensuring instant payment to telecom operators.
Under the EUB system, customers are charged N6.98 per 120-second USSD session, with consent prompts issued before deductions. Safeguards prevent double-billing, and users can opt in or out, while banks must notify customers in advance of session charges. Migration to the new model started between June 3 and June 18, 2025, following partial repayments of N171 billion, and by February 19, 2026, the full backlog had been cleared.
Industry experts say the EUB framework strengthens revenue stability for telecom operators and reduces systemic risks within Nigeria’s digital payments space. While some concerns remain about the potential impact on low-income users, regulators emphasise that the model provides greater transparency, user control, and clarity in USSD billing.
With the N300 billion dispute fully resolved, both banks and telecom operators are expected to collaborate more effectively, fostering a more reliable and efficient digital economy in Nigeria.
