Nigerian Telecoms Rebound as Banks Settle N300bn USSD Debt, Boosting Investor Confidence
Investor confidence is returning to Nigeria’s telecommunications sector following the resolution of a long-standing N300 billion Unstructured Supplementary Service Data (USSD) debt between banks and telecom operators. The debt had weighed heavily on operators’ balance sheets, creating uncertainty across the wider digital ecosystem and slowing investment decisions. With the dispute cleared, market players are now cautiously optimistic about the sector’s growth prospects.
The USSD debt, arising from unpaid charges for banking transactions via mobile platforms, had strained relationships between operators and financial institutions for years. Gbenga Adebayo, chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), described the settlement as a turning point, emphasizing that structured negotiations and regulatory oversight led to the adoption of end-user billing—a move that improves transparency and ensures long-term sustainability.
The timing of the resolution coincides with improving forex liquidity, which has eased pressures on operators who earn revenue in naira but pay for many operational costs, such as software licenses and network equipment, in foreign currencies. This relief allows telecom companies to resume infrastructure investment that had been delayed by financial strain and currency scarcity, ensuring the sector is better positioned to meet international commitments.
Tariff reforms approved earlier this year—the first in 13 years—have also contributed to the positive outlook. While initial public concern focused on higher service charges, regulators and industry leaders argue that the adjustments were necessary to maintain service quality and prevent network deterioration. Idris Olorunnimbe, chairman of the Nigerian Communications Commission (NCC) Board, highlighted that policy consistency and regulatory independence are essential for sustaining investor confidence in the sector.
Signs of renewed investment are already emerging, particularly in fibre and tower infrastructure. Operators and analysts note that markets previously considered distressed are now attracting capital, signaling trust in Nigeria’s telecom fundamentals. With the USSD debt resolved, forex conditions stabilizing, and tariff reforms in place, industry stakeholders are focusing on consolidating reforms, expanding broadband access, and safeguarding critical infrastructure to support Nigeria’s growing digital economy.
source: business day