Nigerian Banks Settle USSD Debts with Telcos – What It Means for Mobile Banking & Digital Finance

After years of disputes, Nigerian banks have finally settled their outstanding debts to telecom operators for USSD services. This move brings relief to both sectors and is expected to stabilize mobile banking, open the door for network upgrades, and improve user experience across the country.

Let’s explore how this resolution impacts you—and what’s coming next.

What Was the USSD Debt Issue About?

USSD (Unstructured Supplementary Service Data) is the technology behind quick mobile banking codes like *737# and *901#.

Banks use telecom networks to deliver these services, but for years, they refused to pay for the infrastructure usage, accumulating over ₦150 billion in unpaid charges.

Telecom companies like MTN, Airtel, and Glo threatened to cut off USSD services, which would have disrupted banking for millions of Nigerians—especially those without smartphones.

The Resolution: Banks Have Paid

As of July 2025, Nigerian banks, in agreement with the Central Bank of Nigeria (CBN), have settled the outstanding debts to telcos. This was confirmed by the Association of Licensed Telecom Operators of Nigeria (ALTON).

Result:

USSD services are now stable and safe from future disconnection
Telecom operators have recovered critical funds needed for network investment
Consumers can expect smoother, faster USSD transactions

Why This Matters

Impact Area	Benefit to Nigerians
USSD Banking	Stable access to banking codes (transfers, airtime)
Telecom Investment	More funds for improving signal and data services
Fintech Innovation	Stronger collaboration between banks and telcos
Rural Access	Better financial access in underbanked areas

Digital Banking Still Growing

Despite the USSD issue, mobile and digital banking continue to grow rapidly in Nigeria:

Over 40 million Nigerians use USSD services daily
Fintech adoption is rising, with players like Kuda, Opay, and Palmpay leading
Mobile app banking is becoming more popular, but USSD remains essential for rural users

What’s Next?

With telecom operators now financially supported by debt repayments and a new ₦1 billion network upgrade, expect:

More reliable mobile banking
Faster response times on USSD
Integration with 5G-backed banking innovations

Some banks are also piloting offline USSD wallets and voice-enabled banking to help non-literate users.

The settlement of USSD debts is a win-win for Nigeria’s financial and telecom sectors. It means better service for users, better cash flow for telcos, and a more inclusive financial system for all Nigerians.