We present a scheme of frequency-degenerate mid-span spectral inversion (MSSI) for nonlinearity compensation in fiber-optic transmission systems. The spectral inversion is obtained by using counter-propagating dual pump four-wave mixing in a semiconductor optical amplifier (SOA). Frequency-degeneracy between signal and conjugate is achieved by keeping two pump frequencies symmetrical about the signal frequency. We simulate the performance of MSSI for nonlinearity compensation by scrutinizing the improvement of the Q-factor of a 200 Gbps QPSK signal transmitted over a standard single mode fiber, as a function of launch power for different span lengths and number of spans. We demonstrate a 7.5 dB improvement in the input power dynamic range and an almost 83% increase in the transmission length for optimum MSSI parameters of −2 dBm pump power and 400 mA SOA current.