The Association of Licensed Telecommunications Operators of Nigeria (ALTON) has said that commercial banks have cleared the nearly N300 billion debt owed telecom operators for Unstructured Supplementary Service Data (USSD) services.
Chairman of the Association, Engr. Gbenga Adebayo confirmed this on Thursday during an official visit to the Chairman of the Nigerian Communications Commission (NCC), Idris Olorunnimbe.
Adebayo said the debt debacle that had lingered over four years was resolved through the intervention of the NCC under the leadership of its Executive Vice Chairman, Dr. Aminu Maida.
The clearing of the debt brought to a close years of accusations and counter-accusations between the banks and telecom operators.
What they are saying
While commending the leadership of the NCC for their recent interventions including the approval of 50% tariff last year, Adebayo said the Commission has steered the ship of the telecom sector through one of its most delicate periods.
- “When Dr. Maida assumed office, he inherited significant industry challenges.
- “One of the most difficult was the USSD debt crisis — a debt burden that grew over four years to nearly N300 billion. It had become a systemic risk to our sector and the digital financial ecosystem.
- “Through firm leadership, structured engagement, and decisive coordination, Dr. Maida and his team resolved this issue.
- “Today, there is no outstanding USSD debt. The ecosystem has fully migrated to end-user billing. What was once a looming crisis has been converted into a sustainable framework,” Adebayo stated.
Tariff review
The ALTON Chairman said another turning point for the telecom industry was the approval of tariff review in 2025.
According to him, for 13 years, the industry maintained static pricing despite rising inflation, currency volatility, aging infrastructure, and escalating energy costs.
- “Our tariffs fell significantly below cost. Investment slowed. Networks became strained. The sector was approaching a stage where service rationing was becoming a real possibility,” he said.
Adebayo said the 50% tariff increase approval granted last year saved the industry from collapse.
- “Today, we are seeing companies gradually return to profitability. Network stabilization has improved. Capital expenditure planning has resumed,” he said.
He, however, noted that operators in the industry continue to face challenges of daily fibre cuts across the country.
Adebayo also called for intervention in the area of “multiple and excessive” taxes and levies being charged by states.
Responding, the NCC Chairman, Olurunnimbe, said the NCC would do everything to ensure the sustainability of the telecom industry.
- “It is very important that this sector, which has been working for over two decades and continues to be a flagship sector for our country, continues to work.
- “We will do what needs to be done, and I know that the channels of communication between us and NCC are very, very open. We will not close those channels.
- “In fact, we will widen them so that we can hear you better and react faster. So, those issues concern us as well. And we will continue to deepen the workings,” he said.
Backstory
Last year, the ALTON Chairman had announced that the banks had cleared 95% of the debt owed to the telecom operators, noting that three banks were yet to pay.
Adebayo said this paved the way for the migration to the end-user billing, as payment of the debt was one of the conditions for the migration.
The ALTON Chairman noted that the three remaining banks had negotiated for instalment payment.
Adebayo emphasized that the end-user billing means customer charges for USSD services will now be deducted from mobile airtime instead of a bank account.
What you should know
The telecom operators had, in June last year, announced the commencement of the end-user billing in line with a new directive from the NCC to put an end to the issue of USSD debt between banks and telcos.
Under the new model, USSD session charges are deducted directly from users’ airtime at a rate of N6.98 per 120 seconds, different from the previous arrangement where banks deduct the money and remit to telcos.
According to ALTON, the migration to end-user billing follows the Determination of USSD Pricing and Services issued by the NCC, which was developed in collaboration with the Central Bank of Nigeria (CBN) and other key stakeholders.
ALTON said the migration aims to create a more sustainable, transparent, and customer-friendly framework for delivering USSD services, especially in Nigeria’s growing digital financial landscape.
