Nigerian telecom operators have settled the long-running Unstructured Supplementary Service Data (USSD) payment dispute with commercial banks, closing a chapter that had strained relations between both sectors for years.

The Association of Licensed Telecom Operators of Nigeria (ALTON) said on Thursday that banks had cleared all outstanding balances related to USSD services, leaving no liabilities on their records.

Speaking during a courtesy visit to the leadership of the Nigerian Communications Commission (NCC), ALTON chairman Gbenga Adebayo said the repayment covered nearly ₦300 billion (about $200 million).

He described the settlement as a critical step toward restoring stability in Nigeria’s digital financial infrastructure.

According to him, regulatory coordination led by the NCC’s executive vice chairman Aminu Maida, alongside the Central Bank of Nigeria, ensured compliance from the banks and prevented potential service disruptions that had been under consideration earlier this year.

The five-year USSD conflict originated as a result of unpaid corporate invoicing for mobile banking sessions, forcing telecom operators to threaten several banks with disconnection, escalating tensions between the sectors.

To prevent a repeat, the industry has fully adopted an end-user billing framework.

Under this model, customers are charged directly from airtime balances rather than banks settling bulk invoices. 

Fees are set at ₦6.98 (about $0.005) per 120-second session and only apply after users approve the charge and complete a successful transaction.

Adebayo said the change creates transparency and eliminates the debt cycle that previously disrupted services.

He added that USSD remains essential for reaching millions of Nigerians without smartphones or reliable internet, particularly in rural and low-income communities.

“With the debts resolved and billing streamlined, the system is now sustainable,” he said, noting that customers can continue using bank codes without interruption.

Source: It Web Africa