Investor Optimism Rises as Telecoms Resolve ₦300bn USSD Debt Burden

Story: written by springnewsng February 24,2026
Confidence is gradually returning to Nigeria’s telecommunications sector after operators cleared a long-standing ₦300 billion USSD debt that had weighed on balance sheets and unsettled investors across the digital economy.
Industry stakeholders say the settlement of the prolonged dispute between telecom operators and banks has removed a major financial cloud, bringing clarity to a sector already under pressure from FX volatility, high energy costs and years of frozen tariffs.
Speaking at a stakeholders’ forum in Lagos, Gbenga Adebayo, chairman of the Association of Licensed Telecommunications Operators of Nigeria, described the resolution as a major turning point. He noted that the debt, which once neared ₦300 billion, had created uncertainty for both telecom firms and the wider financial system. According to him, the migration to end-user billing has now eliminated all outstanding USSD obligations.
The dispute stemmed from unpaid fees for USSD services used by banks for mobile transactions, straining relationships with lenders and complicating long-term network investment plans. Structured engagement involving regulators and industry players, Adebayo said, helped deliver a more transparent and sustainable framework.
Improved foreign exchange liquidity has further eased pressure on operators, many of whom earn in naira but settle key obligations in foreign currency. Combined with the removal of legacy debt, firms are now better positioned to meet offshore commitments and revive delayed capital expenditure.
The recovery has also been supported by recent tariff adjustments approved by regulators—the first major review in over a decade. While the changes sparked consumer concerns, industry leaders argue they were essential to protect service quality and infrastructure investment.
Addressing the forum, Idris Olorunnimbe, chairman of the board of the Nigerian Communications Commission, stressed that policy consistency and regulatory independence are critical to sustaining investor confidence, noting that capital flows toward sectors with clear and predictable rules.
Early signs of renewed interest are already visible, particularly in fibre and tower infrastructure, as analysts say large transactions typically avoid distressed markets. Despite lingering challenges such as fibre cuts and infrastructure damage, the sector’s outlook has shifted from survival to cautious expansion.
With debt issues resolved, FX conditions improving and pricing reforms in place, industry players say the focus is now on strengthening broadband penetration and supporting Nigeria’s fast-growing digital economy.