MTN Nigeria Recovers ₦32 Billion in USSD Debt from Banks

MTN Nigeria recently reclaimed ₦32 billion from Nigerian banks, resolving a long-standing dispute over USSD debts.  This agreement eliminates a financial bottleneck that has long strained relations between telecom companies and banking institutions.  The disagreement arose from unpaid service charges incurred by banks while using MTN’s USSD infrastructure to allow mobile banking transactions.  USSD technology allows seamless financial services such as fund transfers, bill payments, and balance inquiries without the need for an internet connection.  However, for years, telecom operators have failed to collect service fees from banks, resulting in growing debt and unhappy ties.

The recovery of ₦32 billion represents a major win for MTN Nigeria and the broader telecom sector. This resolution not only strengthens financial stability but also paves the way for smoother collaborations between telecom operators and banks. By settling the debt, both parties can now focus on improving mobile banking services, ensuring more efficient and reliable transactions for millions of Nigerians. With the dispute resolved, telecom providers can continue expanding USSD-based financial services without disruptions. This is particularly crucial in Nigeria, where a large portion of the population relies on mobile banking for financial transactions. Improved cooperation between telecom firms and banks is expected to enhance financial inclusion, allowing more Nigerians to access banking services conveniently.

The conclusion of the USSD debt dispute represents a step toward improved regulatory and financial frameworks in Nigeria’s digital banking ecosystem.