Telecommunications operators in Nigeria have announced that beginning Wednesday, June 18, 2025, mobile subscribers in the country will begin to pay directly for USSD services through their airtime.
This marks the formal migration to the End-User Billing (EUB) model, in line with a new directive from the Nigerian Communications Commission (NCC).
The announcement by the Association of Licensed Telecom Operators of Nigeria (ALTON) overrides the earlier notice issued by some banks earlier this month, claiming that the deduction would start on June 3.
According to ALTON, the migration to end-user billing follows the Determination of USSD Pricing and Services issued by the NCC, which was developed in collaboration with the Central Bank of Nigeria (CBN) and other key stakeholders.
Transparency in USSD charges
ALTON said this migration aims to create a more sustainable, transparent, and customer-friendly framework for delivering USSD services, especially in Nigeria’s growing digital financial landscape.
- Under the new arrangement, USSD session charges will now be deducted directly from users’ airtime at a rate of N6.98 per 120 seconds.
- Customers will receive a prompt to opt in before the charge is applied, and only successful sessions will be billed, a move ALTON says will eliminate double billing and improve customer experience.
- Previously, telcos billed the banks for USSD services in a corporate billing model that led to frequent disputes over unpaid charges.
- These disputes often resulted in service disruptions, affecting millions of users who rely on USSD codes for financial transactions.
“With this transition, mobile network operators will now charge customers directly, ensuring a more accountable and efficient system,” said ALTON Chairman, Engr. Gbenga Adebayo, in the statement.
Banks to notify their customers
To qualify for migration to the new model, ALTON says banks must meet specific regulatory and operational conditions, including notifying customers about the change in billing well in advance.
It added that customers must also be educated on how the charges will be applied.
ALTON has also issued support guidelines to ensure a seamless transition:
- For issues accessing USSD codes, customers should contact their mobile network provider.
- For transaction errors, customers are advised to reach out to their banks.
- Both telcos and banks are mandated to provide responsive customer support.
While the change is expected to impact how users interact with mobile financial services, ALTON has assured that alternative digital banking channels, including mobile apps, internet banking, and ATMs, remain fully operational.
“USSD remains critical in deepening financial inclusion across Nigeria, especially for underserved and low-income populations. ALTON is committed to working with regulators and financial institutions to ensure this transition benefits all users,” the statement added.
What you should know
For years, Nigerian banks and telcos have been having a running battle over USSD debt as the former often fail to remit to the latter after deducting from customers’ accounts.
- To resolve the matter, in December 2024, the Central Bank of Nigeria (CBN) and the NCC directed mobile network operators (MNOs) and DMBs to resolve the long-standing N250 billion USSD debt.
- Following threats by telcos to withdraw services over the debt accumulated by banks, the NCC, in January, threatened to suspend the USSD service and publish a list of banks still owing telcos.
- On January 15, the regulator directed telcos to disconnect the USSD codes assigned to nine banks by January 27 due to unpaid debts.
- On February 28, MTN Nigeria said it received N32 billion out of N72 billion from banks as part of payment for the USSD debt.
