Nigerian commercial banks have successfully repaid a long-standing N300 billion debt owed to telecoms operators for Unstructured Supplementary Service Data (USSD) services, bringing an end to a five-year impasse that had become a significant systemic risk to the digital financial ecosystem. This crucial development was announced by Mr. Gbenga Adebayo, Chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON), during a visit to Mr. Idris Olorunnimbe, Chairman of the Nigerian Communications Commission (NCC). Mr. Adebayo specifically lauded the strategic intervention and leadership of Dr. Aminu Maida, the Executive Vice Chairman (EVC) of the NCC, for his pivotal role in resolving the issue and facilitating the industry's migration to an end-user billing system.

The USSD debt crisis, which had accumulated over four years, posed a severe challenge to both telcos and deposit money banks. The dispute escalated to a point where telecoms operators had threatened to disconnect USSD services from approximately 18 commercial banks due to the pending payments. The prolonged conflict necessitated the intervention of regulatory bodies, with the NCC and the Central Bank of Nigeria stepping in to mediate and establish new frameworks for payment resolution.

A significant turning point for the industry, as highlighted by the ALTON Chairman, was the approval of a 50% telecoms tariff hike. This measure is expected to help restore operational excellence for the operators. In response, NCC Chairman Olorunnimbe affirmed the commission's commitment to implementing plans that ensure the sector's continuous growth and benefit for all stakeholders and the country. He also emphasized the importance of enhancing communication channels between regulators and regulated entities to ensure quicker reactions to industry concerns.

To prevent future clashes over USSD payments, the NCC introduced a new end-user billing system in June 2025. Under this system, USSD fees are now directly deducted from users' mobile airtime balances, a shift from the previous model where charges were debited from customers' bank accounts. Each USSD session under the new structure incurs a charge of N6.98 per 120 seconds, billed by mobile network operators. Users are prompted for consent at the beginning of each session, with airtime deductions subject to confirmation and the availability of bank services. Furthermore, customers retain the flexibility to opt out of using USSD channels at any time.

Mr. Adebayo reassured the public that this change to end-user billing would not compromise the availability of essential USSD banking services, provided customers maintain sufficient airtime. USSD services have proven to be an indispensable banking alternative, particularly for users without internet access, enabling them to conduct vital financial transactions across Nigeria.