Banks Settle Nearly ₦300bn USSD Debt, ALTON Confirms
Nigeria’s banking industry has cleared nearly N300 billion in outstanding Unstructured Supplementary Service Data (USSD) debt owed to telecommunications operators, according to the Association of Licensed Telecommunications Operators of Nigeria (ALTON), marking a significant breakthrough in the long-running dispute between banks and telcos over unpaid service charges.
For years, mobile network operators had raised concerns over the mounting debt incurred from USSD transactions used by bank customers for transfers, bill payments, airtime purchases and other digital banking services.
The standoff, which at its peak reportedly approached N300 billion, threatened to disrupt USSD banking services nationwide and triggered regulatory interventions to prevent service withdrawal that could have affected millions of financially included Nigerians.
Industry sources indicate that the settlement followed sustained engagements among the banks, telecom operators, and regulators including the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC). Both regulators had repeatedly emphasized the need to protect consumers and ensure uninterrupted access to digital financial services, especially as USSD remains a critical channel for customers without smartphones or reliable internet access.
ALTON confirmed that most of the legacy debt has now been substantially cleared, easing tensions in the sector and restoring confidence in the USSD payment framework. The resolution is expected to strengthen collaboration between financial institutions and telecom operators, two industries that play a pivotal role in Nigeria’s digital economy and financial inclusion drive.
The USSD platform has been instrumental in expanding banking penetration, particularly in rural and underserved communities. With the debt burden largely resolved, stakeholders believe the focus can now shift toward improving service quality, pricing transparency, and infrastructure investments that will enhance user experience.
Market analysts note that the development reduces systemic risk in the fintech ecosystem and removes a lingering operational uncertainty that had weighed on relations between the two sectors. As Nigeria continues to deepen cashless transactions and digital payments adoption, the settlement signals renewed stability in one of the country’s most widely used banking channels
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