N32bn, out of N74bn USSD debt, received from banks, says MTN Nigeria

MTN Nigeria says it received N32 billion from banks as part of payment for the unstructured supplementary service data (USSD) debt.

The USSD, also known as quick or feature codes, is a global system for mobile communications (GSM) protocol that is used to send text messages and initiate financial transactions such as cash transfers, balance inquiries, payments for services, and others.

Telecommunications companies (telcos) had threatened to withdraw their services over the N250 billion accumulated debt by banks.

In December 2024, the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) issued a joint circular to resolve the long-standing USSD debt impasse between banks and mobile network operators (MNOs).

Later in January 2025, TheCable reported that the NCC was planning to suspend the USSD service and publish a list of banks still owing telcos for the service.

Speaking to journalists at a forum with telecoms executives on February 2, Gbenga Adebayo, chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), said progress towards the dispute’s final resolution was being made.

Providing updates in its full-year audited financial statement for 2024, released on Thursday, MTN Nigeria said N32 billion out of N74 billion has been paid by banks.

“The implementation of end-user billing for USSD services at a flat fee of N6.98 per transaction conducted by Deposit Money Banks (DMBs) and all CBN-licensed institutions brought about the dispute between MNOs and the financial institutions on the applicable charges for USSD services and the method of billing,” the telco said.

“Consequently, this precipitated unresolved issues since 2020 on USSD debts between DMBs and MNOs until the 20 December 2024 resolution by CBN and NCC.

“The directive from CBN and NCC requires sixty percent (60%) of all pre-API invoices to be paid as full and final settlement by 2 July 2025 while for post-API invoices the DMBs are required to pay 85 percent (85%) of outstanding invoices issued after the February 2022 implementation of APIs by 31 December 2024. 

“In addition, future invoices are to be settled within one month of issuance.

“Based on this directive, on 31 December 2024, MTN received N32 billion payment from the banks out of the N74 billion in CBN and NCC circulars to banks.”

On January 15, NCC directed telcos to disconnect the USSD codes assigned to nine banks by January 27 due to unpaid debts.