The Association of Licensed Telecommunications Operators of Nigeria (ALTON) stated that the tariff adjustments and settlement of outstanding USSD service arrears spearheaded by the Nigerian Communications Commission (NCC) constitute vital measures to lift the domestic telecom sector out of prolonged financial strain and restore its capacity for network investment. The association argued that over more than a decade, communication tariffs failed to reflect rising costs for fuel, foreign exchange, equipment maintenance and network rollout. Meanwhile, protracted disputes over accumulated USSD fees between banks and operators once created systemic risks to digital financial services.
During a courtesy visit to the newly appointed NCC Board Chairman Idris Ibikunle Olorunnimbe, ALTON President Gbenga Adebayo noted that the telecom industry had long operated under pricing frameworks derived from older cost studies. By 2024, inflation, Naira depreciation and foreign exchange volatility drove up operational costs substantially, pushing some operators into losses and straining network services. The NCC approved tariff adjustments of up to 50% in January 2025. Although lower than the 100% hike initially requested by operators, the move is widely seen within the industry as a critical intervention to rebuild cash flow and sustain capital expenditure on networks.
Reports recap the years-long USSD billing dispute between mobile network operators and deposit money banks. The dispute originally centred on approximately NGN 42 billion in unpaid fees and later expanded to roughly NGN 300 billion. USSD serves as a core channel for mobile finance across Nigeria, enabling subscribers to check balances, transfer funds and access basic financial services. Failure by banks to settle dues to operators after charging end-users threatened the long-term viability of such network services.
Jointly driven by the NCC and the Central Bank of Nigeria (CBN), banks were mandated to settle legacy arrears according to agreed timelines. According to ALTON, the approximately NGN 300 billion USSD indebtedness had been largely resolved by February 2026. The sector has since migrated toward an end-user direct charging model: subscribers pay USSD charges directly from their airtime balance at the prevailing rate of around NGN 6.98 per 120 seconds. This model eliminates collection and settlement frictions between banks and operators while boosting pricing transparency and settlement efficiency.
