MTN Nigeria Recoups Billions in USSD Debt, But Banks Still Owe Big

MTN Nigeria has clawed back ₦32 billion from local banks over long-standing Unstructured Supplementary Service Data (USSD) charges. But with ₦42 billion still unpaid, tensions remain high between telecom operators and financial institutions over the disputed fees.

The recovery follows regulatory pressure from the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC), which in December 2024 ordered banks to pay ₦212.5 billion—a significant portion of the ₦250 billion owed to telcos—by the end of the year. Under the directive, banks must also clear 85% of new invoices within a month and settle 60% of outstanding debts before accessing telecom USSD services. Failure to comply could trigger penalties, including fines and service restrictions.

Unresolved Disputes Persist

Despite the payments, the unresolved ₦42 billion remains classified as receivables, with MTN expecting settlement in 2025. The USSD fee dispute has dragged on for years, with banks pushing back against charges and revenue-sharing terms. While previous interventions, including a 2021 NCC mandate for direct deductions from customer accounts, sought to resolve the standoff, payments have remained inconsistent.

It is unclear whether banks met the regulatory deadline or if the CBN and NCC plan to impose penalties on defaulters. Telecom operators have long urged stricter enforcement, arguing that unreliable payments threaten their financial sustainability.

Financial Impact on MTN

The partial debt recovery provided a small boost to MTN Nigeria’s full-year 2024 earnings, adding 3.1% to its service revenue, which surged by 35.9% to ₦3.3 trillion, up from ₦2.4 trillion in 2023.

However, despite the revenue growth, MTN Nigeria posted a staggering after-tax loss of ₦400.44 billion in 2024—almost triple its ₦137.02 billion loss in 2023. The losses stemmed largely from the naira’s devaluation, soaring tower lease costs, and mounting foreign exchange obligations exacerbated by currency volatility.

As banks and telecom firms navigate this financial tug-of-war, the question remains—will the remaining ₦42 billion be settled, or will the dispute drag on?