The Nigerian telecommunications industry is currently undergoing a radical financial recalibration.
This follows a decade of systemic risks that nearly pushed major operators to the brink of insolvency.
During a congratulatory visit to Dr. Idris Ibikunle Olorunnimbe, the recently appointed board chairman of the Nigerian Communications Commission (NCC), on February 19, 2026, the Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), Engr. Gbenga Adebayo, laid bare the high-stakes history of the sector’s recent recovery.
At the heart of this survival story are two critical milestones: the end of a 13-year tariff freeze and the final resolution of a toxic ₦300 billion USSD debt.
The 13-Year Pricing Freeze: From Stagnation to Cost-Reflective Reality
For over a decade, Nigeria’s telecom tariffs were frozen in time. While the cost of diesel, foreign exchange, and infrastructure maintenance skyrocketed, call and data rates remained pegged to 2013 economic realities.
The Background
Until early 2025, operators were largely operating on a cost study conducted over 10 years prior.
By 2024, with inflation crossing 30% and the Naira devalued by over 200%, the industry reached a service rationing warning stage.
Operators like MTN Nigeria reported record losses (over ₦514 billion) primarily due to forex exposure and static pricing.
In January 2025, the NCC, under Dr. Aminu Maida, executive vice chairman approved a 50% tariff adjustment.
While operators had clamored for a 100% increase, the 50% sustainability intervention raised voice call floors from roughly ₦6.40 to ₦9.60 per minute, providing the necessary liquidity to resume capital expenditure (CAPEX).
The USSD Debt Saga: Resolving the ₦300 Billion Systemic Risk
Perhaps the most contentious battle in the history of Nigerian fintech was the USSD debt dispute between Mobile Network Operators (MNOs) and Deposit Money Banks (DMBs).
What began as a ₦42 billion disagreement in 2021 ballooned into a ₦300 billion crisis by early 2026.
The History of the Dispute:
Phase 1 marked by standoff: Banks refused to remit USSD service fees to telcos, arguing that the service should be billed to consumers differently.
Phase 2 marked by regulatory deadlock: Previous attempts at resolution saw the debt rise from ₦120 billion to ₦250 billion as both parties waited for a definitive regulatory hammer.
Phase 3 marked the final settlement): In late 2024 and throughout 2025, a joint directive from the NCC and the Central Bank of Nigeria (CBN) mandated a structured repayment plan.
Banks were ordered to clear 60-85% of outstanding invoices as a final settlement.
By February 2026, Engr. Adebayo confirmed that the banks had successfully cleared the nearly ₦300 billion debt, effectively de-risking the digital financial ecosystem.
The Shift to End-User Billing (EUB)
The resolution of the USSD debt paved the way for a permanent structural change: End-User Billing.
Under this new framework, the middleman friction has been eliminated. Instead of banks collecting fees and (potentially) failing to remit them to telcos, charges are now deducted directly from the user’s airtime at the point of the USSD session (currently ₦6.98 per 120 seconds).
Why EUB Matters:
Users see exactly what they are paying for in real-time, telcos receive their revenue instantly, preventing future debt accumulation, and it secures the platform that millions of unbanked Nigerians rely on for basic transfers and balance inquiries.
The Road Ahead: Protecting the Gains
While Engr. Adebayo celebrated these victories, he warned that the industry’s recovery remains fragile.
The focus has now shifted to Infrastructure Protection. Despite the Critical National Information Infrastructure (CNII) status, operators still face daily fibre cuts by road contractors and multiple taxation by sub-national governments.
Industry analysts believe that the successful resolution of the USSD debt and the tariff review marks a reset for Nigeria’s digital economy.
For years, the telecom sector was the shock absorber for the economy’s inefficiencies. By allowing cost-reflective pricing and enforcing debt settlement, the NCC has signaled to global investors that Nigeria is ready to move away from subsidized consumption toward a more sustainable, investment-driven model.
The next battle for the NCC Board will be ensuring this new revenue is actually funneled back into network quality, as subscribers now expect Gold Standard service for their higher payments.
