Nigerian Banks Clear N300bn Telecom Debt as Airtel Africa Eyes Mobile Money IPO
Nigeria's banking sector has settled its massive USSD debt to telecom operators while Airtel Africa pursues ambitious expansion plans including a mobile money IPO and cryptocurrency services.
Syntheda's AI technology correspondent covering Africa's digital transformation across 54 countries. Specializes in fintech innovation, startup ecosystems, and digital infrastructure policy from Lagos to Nairobi to Cape Town. Writes in a conversational explainer style that makes complex technology accessible.
Nigeria's long-running financial standoff between banks and telecom operators has finally reached resolution, with commercial banks clearing nearly N300 billion ($195 million) in accumulated debt for Unstructured Supplementary Service Data (USSD) services, according to the Association of Licensed Telecommunications Operators of Nigeria (ALTON).
The debt settlement closes a contentious chapter that threatened to disrupt mobile banking services for millions of Nigerians who rely on USSD codes to check balances, transfer funds, and pay bills without internet access. The dispute had escalated to the point where telecom operators threatened service disconnections, potentially cutting off rural populations from basic financial services.
How the Debt Accumulated
USSD technology allows customers to access banking services by dialing short codes on basic mobile phones, a lifeline in a country where smartphone penetration remains below 40% but mobile phone ownership exceeds 85%. Banks charge customers nominal fees for these transactions but had been slow to remit payments to telecom operators who provide the underlying infrastructure.
The debt accumulated over several years as banks and telcos disagreed over pricing structures and revenue-sharing arrangements. Telecom operators argued they were subsidizing banking services while bearing infrastructure costs, while banks contended that USSD fees should reflect the technology's declining costs. According to ALTON's confirmation reported by Nairametrics, the settlement represents a breakthrough in negotiations that had involved Nigeria's central bank and communications regulator.
The resolution comes at a critical moment for Nigeria's digital economy. Mobile money transactions processed through USSD channels exceeded N8 trillion in 2025, making the service essential for financial inclusion efforts targeting the country's unbanked population estimated at 38 million adults.
Airtel's Ambitious Expansion Strategy
While Nigeria resolves its telecom-banking tensions, pan-African operator Airtel Africa is charting an aggressive growth path across multiple fronts. The company has announced preparations for a public listing of its mobile money unit, which has become a standout performer in its portfolio with over 40 million active users across 14 African markets.
Business Day reports that Airtel Africa is simultaneously advancing discussions on using Starlink satellite technology and exploring cryptocurrency integration for cross-border payments. The mobile money IPO would follow a similar strategy by Safaricom, whose M-Pesa spinoff has been discussed as a potential separate listing that could unlock significant shareholder value.
Airtel Money processed transactions worth $87 billion in the fiscal year ending March 2025, representing 35% growth year-over-year. The unit's revenue contribution to Airtel Africa's total earnings has climbed to 18%, up from just 9% five years ago, making it an attractive standalone investment proposition.
Satellite and Crypto Expansion
The potential Starlink partnership signals Airtel's recognition that traditional tower infrastructure won't reach Africa's most remote communities cost-effectively. Satellite connectivity could enable Airtel to extend mobile money services to underserved regions while reducing capital expenditure on physical infrastructure. This approach mirrors strategies by other African operators who are increasingly viewing satellite technology as complementary rather than competitive.
Airtel's cryptocurrency exploration focuses on remittances and cross-border payments, where traditional banking rails remain expensive and slow. African diaspora remittances totaled $95 billion in 2025, with average transaction costs still hovering around 8% despite global commitments to reduce fees to 3%. Cryptocurrency settlement could dramatically reduce these costs while speeding up transaction times from days to minutes.
The convergence of these developments—debt resolution in Nigeria and Airtel's expansion plans—reflects a maturing African fintech ecosystem where infrastructure providers, financial institutions, and telecom operators are finding sustainable business models. The USSD debt settlement establishes clearer commercial terms that should prevent future disputes, while Airtel's diversification demonstrates how mobile operators are evolving beyond connectivity into comprehensive financial services platforms.
For Africa's 1.4 billion people, these shifts mean expanded access to digital financial services through multiple channels, whether via basic USSD codes, smartphone apps, or emerging satellite-enabled networks. The continent's mobile money market is projected to reach $1.2 trillion in annual transaction value by 2028, driven by regulatory support, infrastructure investment, and innovative service offerings that meet users where they are.