How Settled USSD Debts Are Fueling New Telecom Investments in Nigeria (2025 Insight)

After years of dispute between banks and telecom operators over unpaid USSD service fees, a major breakthrough has occurred in 2025. Over 95% of Nigeria’s commercial banks have now fully settled their outstanding debts to telcos — unlocking new capital for urgent investments in infrastructure and digital innovation.

This development marks a turning point in the digital economy, strengthening cooperation between telecoms and financial institutions and leading to better mobile services for all Nigerians.

Background: What Was the USSD Dispute?

USSD (Unstructured Supplementary Service Data) is the system that allows mobile users to perform banking transactions without internet, such as checking account balances or transferring money (e.g., *737#, *901#).
For years, Nigerian banks refused to pay telcos for USSD infrastructure usage, racking up a debt of over ₦180 billion.
This resulted in threats of service disconnection, dropped sessions, and frustration for millions of users.

What Changed in 2025?

With pressure from the Nigerian Communications Commission (NCC) and Central Bank of Nigeria (CBN), the following reforms took place:

Reform	Impact
Debt Clearance	13 major banks have paid 95% of their debts as of June 2025
Billing Model Change	USSD fees now deducted from users’ airtime, not banks
Transparent Charges	Customers now receive clear USSD charge alerts before use
Free-Flowing Funds	Telcos now reinvest recovered money into infrastructure

Source: Vanguard Nigeria

What This Means for Nigerians

No more blocked USSD sessions or failed transactions
Better cooperation between banks and telcos = improved service delivery
Faster deployment of mobile broadband, 4G and 5G towers
Rural banking and fintech expansion will accelerate due to better telecom reach

Telecom Investment Plans Enabled by Settlement

MTN Nigeria is now committing ₦600 billion toward 5G deployment and rural tower installations
Airtel is expanding their digital service offerings, including mobile wallets and virtual banks
Glo and 9mobile are back to full USSD support and planning new partnerships with fintech startups

These investments are now possible due to the cleared financial backlog.

The resolution of the USSD debt crisis is one of the most impactful financial reforms in Nigeria’s telecom space this year. It’s not just about paying back — it's about restoring trust, unlocking new investments, and improving digital access for over 200 million Nigerians.

Whether you’re a bank customer, small business owner, or app developer — you’ll benefit from faster, more reliable USSD services and better mobile coverage in the months ahead.

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