MTN Nigeria has recovered ₦32 billion from Nigerian banks as part of the ₦74 billion owed for USSD service charges. However, ₦42 billion remains unpaid, showing ongoing tensions between banks and telecom companies.
The recovery follows an order from the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) in December 2024. The regulators directed banks to pay ₦212.5 billion, 85% of a total ₦250 billion debt to telcos by December 31, 2024. Banks were also required to pay 85% of new invoices within a month and agree on a plan by January 2, 2025, to clear 60% of outstanding debts before accessing USSD services. Non-compliance could result in fines or service restrictions.
MTN Nigeria stated that while the ₦32 billion recovered helps its cash flow, the remaining ₦42 billion is still outstanding and expected to be settled in 2025.
This USSD payment dispute has lasted for years, with banks disputing charges and revenue-sharing agreements. Despite multiple regulatory interventions, including a 2021 directive requiring direct deductions from customer accounts, settlements have remained inconsistent.
It is unclear if any banks missed the regulatory deadline and whether CBN or NCC will enforce penalties. Telecom companies argue that delayed payments threaten their financial stability.
The partial debt recovery slightly boosted MTN’s 2024 earnings, contributing 3.1% to its service revenue, which grew by 35.9% to ₦3.3 trillion from ₦2.4 trillion in 2023. However, despite revenue growth, MTN Nigeria reported an after-tax loss of ₦400.44 billion in 2024, nearly triple its ₦137.02 billion loss in 2023. This was mainly due to the naira’s depreciation, rising tower lease costs, and foreign currency debts impacted by exchange rate fluctuations.
