MTN Nigeria has successfully recovered ₦32 billion from Nigerian banks, a portion of the ₦74 billion owed for Unstructured Supplementary Service Data (USSD) service charges. However, ₦42 billion remains unpaid, emphasizing the persistent financial dispute between telecom operators and banks.
The repayment follows regulatory intervention by the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) in December 2024. The directive mandated banks to settle ₦212.5 billion—85% of the total ₦250 billion owed to telecom companies—by December 31, 2024. Additionally, banks were instructed to clear 85% of new invoices within one month and agree on a repayment plan by January 2, 2025, to cover at least 60% of outstanding debts before regaining access to telecom USSD services. Non-compliance could result in penalties, including fines and service restrictions.
Despite the ₦32 billion recovery, MTN Nigeria still classifies the remaining ₦42 billion as receivables, expecting settlement in 2025. This USSD debt conflict has been ongoing for years, with banks disputing charges and revenue-sharing models. While regulatory interventions—such as the NCC’s 2021 directive for direct customer deductions—have aimed to resolve the impasse, settlements have remained inconsistent.
Although banks have begun repayments, it remains uncertain whether all institutions met the regulatory deadline or if the CBN and NCC will impose penalties. The telecom industry continues to push for stricter enforcement, warning that inconsistent payments could jeopardize financial sustainability.
The debt recovery slightly improved MTN Nigeria’s full-year 2024 earnings, contributing 3.1% to its service revenue, which surged by 35.9% to ₦3.3 trillion in 2024 from ₦2.4 trillion in 2023. However, despite revenue growth, MTN Nigeria reported a significant after-tax loss of ₦400.44 billion in 2024—nearly triple its ₦137.02 billion loss in 2023—primarily due to the naira’s depreciation. Rising tower lease costs and foreign exchange volatility further exacerbated losses, increasing the company’s financial strain.
As the industry awaits further developments, the resolution of the remaining debt will be crucial for sustaining telecom operations and maintaining seamless digital banking services in Nigeria.
