adverts
MTN Nigeria Recovers $21M in USSD Debt, $28M Remains Unpaid
MTN Nigeria has successfully recovered $21 million from Nigerian banks as part of the $49 million outstanding debt for Unstructured Supplementary Service Data (USSD) service charges.
However, $28 million remains unpaid, prolonging a long-standing dispute between telecom operators and financial institutions.
The recovery follows a regulatory intervention by the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) in December 2024. In a decisive move, the regulators mandated banks to pay $140 million—85% of a total $164 million owed to telcos—by December 31, 2024.
adverts
Additionally, banks were required to settle 85% of new invoices within a month and agree on a structured repayment plan by January 2, 2025. Non-compliance would result in penalties, including fines and service restrictions.
Despite the partial recovery, MTN Nigeria confirmed that the $28 million still unpaid remains classified as receivables, with expectations of settlement in 2025.
The telecom industry has long criticised banks for delayed payments, citing challenges in revenue-sharing agreements and disputes over billing accuracy.
The USSD debt crisis dates back several years, with banks resisting payments due to concerns over transaction fees and revenue distribution. Regulatory efforts, including a 2021 NCC directive that required direct deductions from customer accounts, have yet to fully resolve the issue.
While banks have begun repayments, it is unclear whether any have missed the regulatory deadline and whether the CBN or NCC will enforce penalties. Telecom operators continue to advocate for stricter enforcement, emphasising that inconsistent payments threaten financial sustainability and hinder future investments.
The debt recovery provided a slight boost to MTN Nigeria’s earnings, contributing 3.1% to its service revenue, which rose to $2.17 billion in 2024, up from $1.58 billion in 2023.
However, despite the revenue growth, the telecom giant reported an after-tax loss of $263 million in 2024—nearly triple its $90 million loss in 2023. The losses were primarily driven by the naira’s devaluation, rising tower lease costs, and foreign currency obligations, which surged due to exchange rate volatility.
MTN Nigeria remains optimistic about improving its financial outlook in 2025. The company expects a recent tariff hike to drive a 40% revenue increase, helping to offset the impact of foreign exchange losses and operational costs.
As the USSD debt repayment continues, all eyes are on the CBN and NCC to enforce compliance measures, ensuring banks meet their financial obligations to telecom operators.
Click the link Puretvonline.com | WhatsApp Channel to join the WhatsApp channel
GOT A STORY?
Contact/WhatsApp: +233243201960 or Email: manuelnkansah33@gmail.com
