MTN Nigeria has made significant progress in its ongoing dispute with Nigerian banks over Unstructured Supplementary Service Data (USSD) service charges, recovering ₦32 billion from the financial institutions. However, the telecom operator still awaits payment of ₦42 billion, highlighting the lingering tensions in the long-standing feud.

The recovery follows an intervention by the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) in December 2024. The regulators ordered banks to pay ₦212.5 billion—85% of a total ₦250 billion owed to telcos—by December 31, 2024. Banks were also required to settle 85% of new invoices within one month and agree on a repayment plan by January 2, 2025, to clear 60% of outstanding debts before accessing telecom USSD platforms. Failure to comply would attract sanctions, including fines and service restrictions.

MTN Nigeria stated that while the recovered ₦32 billion contributes to its cash flow, the outstanding ₦42 billion is still classified as receivables, expected to be settled in 2025. The USSD fee standoff dates back several years, with banks resisting payments over claims of disputed charges and revenue-sharing disagreements. Despite multiple regulatory interventions, including a 2021 NCC directive mandating direct deductions from customer accounts, settlements have remained inconsistent.

The debt recovery slightly boosted MTN's earnings for the full-year 2024, contributing 3.1% to its service revenue, which grew by 35.9% to ₦3.3 trillion in 2024, up from ₦2.4 trillion in 2023. However, despite revenue growth, MTN Nigeria reported a staggering 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. The loss was worsened by rising tower lease costs and foreign currency obligations, which ballooned due to FX volatility.

The telecom sector has long pushed for stricter enforcement, arguing that inconsistent payments threaten financial sustainability. While banks have begun repayments, it remains unclear if any have missed the regulatory deadline and whether CBN or NCC will impose penalties. The ongoing dispute highlights the need for a more comprehensive resolution to ensure the financial stability of telecom operators and the sustainability of USSD services in Nigeria.

The development comes as MTN Nigeria continues to navigate the challenges of operating in a volatile economic environment. The company's efforts to recover outstanding debts and improve its financial performance will be closely watched by industry stakeholders and investors alike.