After five years of tension, Nigerian banks have finally settled the massive ₦300 billion debt owed to telecom companies for USSD services.

This isn’t just a financial headline; it marks the resolution of a standoff that threatened to disrupt both the banking and telecom industries and the wider digital financial ecosystem.

The announcement came from Gbenga Adebayo, Chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON), during a visit to the Nigerian Communications Commission (NCC).

He confirmed that the full ₦300 billion has been paid and praised Dr. Aminu Maida, NCC’s Executive Vice Chairman, for his strategic intervention that brought the standoff to an end.

“This debt had grown into a systemic risk for the sector and the digital financial ecosystem,” Adebayo noted, highlighting the urgency that had built over years of delays.

How the USSD Debt Saga Unfolded

The USSD debt crisis began quietly but soon became one of the most notorious financial disputes in Nigeria’s recent history. Telecom companies had been providing USSD channels that allow bank customers to perform transactions without internet.

While banks enjoyed the service, payment delays persisted for years, ultimately accumulating to ₦300 billion.

At the peak of the dispute, telecom operators threatened to cut off USSD access to 18 banks, a move that could have paralyzed millions of customers who rely on USSD codes for basic banking services, from fund transfers to bill payments.

The standoff prompted intervention from both the Nigerian Communications Commission (NCC) and the Central Bank of Nigeria (CBN).

New regulatory frameworks were introduced to manage USSD fees and prevent future payment delays.

A key turning point, according to ALTON, was the 50% telecom tariff hike approval, which helped stabilize the sector and incentivize banks to settle outstanding debts.

How the New End-User Billing System Works

A critical part of resolving the debt was the implementation of the end-user billing system in June 2025. This system changes the way USSD fees are collected, shifting the responsibility from banks to the mobile users themselves. Key highlights include:

• USSD fees are now deducted directly from users’ mobile airtime, rather than their bank accounts.

• Each 120-second USSD session costs ₦6.98.

• Users receive a consent prompt before any deduction is made.

• Customers can opt out of USSD channels at any time.

  

This new approach reduces friction between banks and telecom operators while maintaining accessibility for millions of Nigerians who rely on USSD banking without internet connectivity.

What This Means for Everyday Nigerians

For the average Nigerian using USSD codes, there is no disruption in service. As long as you have airtime, you can continue to transfer funds, check balances, and pay bills seamlessly through USSD codes.

Adebayo emphasized that the end-user billing system protects both the service providers and customers, ensuring that USSD remains reliable while avoiding disputes over unpaid fees.

USSD banking has become a lifeline for millions of Nigerians, particularly in rural areas or regions with unreliable internet.

Settling the ₦300 billion debt goes beyond balancing the books; it safeguards a critical financial infrastructure that millions depend on daily.

The new airtime-based billing system, combined with consent prompts, ensures transparency, protects users from unexpected charges, and creates a sustainable model for telecom and banking collaboration.

For the NCC, this represents a landmark regulatory success, providing a blueprint to prevent similar crises in the future.

The Takeaway

The ₦300 billion USSD saga is finally over. USSD banking continues uninterrupted, now backed by a smarter, user-focused billing system. Banks, telecom operators, and customers alike are set to benefit from a more efficient, transparent, and sustainable USSD ecosystem.

This development is a major win for Nigeria’s digital financial inclusion efforts, ensuring millions of Nigerians can keep banking seamlessly; no internet, no problem.