An amount of ₦32 billion has been recovered by MTN Nigeria from Nigerian banks, which is part of the ₦74 billion debt owed to the telecom operator for USSD service charges. However, there is still an outstanding ₦42 billion, indicating unresolved issues in the dispute between banks and telecom companies.
The recovery came after an intervention by the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) in December 2024. The regulators directed banks to settle a significant portion of the debt owed to telcos by a specific deadline, with consequences for non-compliance.
MTN Nigeria acknowledged the recovered amount of ₦32 billion as a positive contribution to its cash flow but noted that the remaining ₦42 billion is classified as receivables and is anticipated to be resolved in 2025.
The dispute over USSD fees has persisted over the years, with banks disputing charges and revenue-sharing arrangements. Despite regulatory interventions, including directives for direct deductions from customer accounts, the issue has not been fully resolved.
While some banks have started repaying the debts, it is uncertain if any have missed the regulatory deadline and what penalties may be imposed by the CBN or NCC. The telecom industry continues to advocate for stricter enforcement to ensure financial stability.
The recovery of debt slightly impacted MTN’s earnings in 2024, contributing 3.1% to its service revenue, which saw significant growth compared to the previous year. However, the company reported a substantial after-tax loss in 2024 due to various factors, including currency depreciation and increased operational costs.