In a landmark resolution poised to reshape Nigeria’s digital financial ecosystem, telecommunications operators, commercial banks, and mobile subscribers have reached a long-awaited agreement on Unstructured Supplementary Service Data (USSD) billing. Under the newly approved End-User Billing (EUB) model, mobile network operators can now directly deduct USSD charges from subscribers’ airtime balances, following an opt-in confirmation.
This development, backed by the Nigerian Communications Commission (NCC) and the Central Bank of Nigeria (CBN), puts an end to a years-long conflict between telcos and banks over unpaid USSD service fees, which amounted to over ₦200 billion by the end of 2024.
The billing shift ensures telecom companies such as MTN, Airtel, 9mobile, and Glo receive direct revenue from USSD services without routing payments through the banks — a practice telcos had long criticized for lack of transparency and accountability.
“Before now, banks would deduct the money from our accounts and fail to remit it to the telcos. It was always a problem,” said Adeolu Ogunbanjo, President of the National Association of Telecoms Subscribers (NATCOMS).
With the N6.98 flat rate per 120-second session now chargeable directly from subscribers’ airtime, the telcos expect better revenue flow and more transparency. Importantly, users will only be charged after receiving a prompt to confirm their consent — a feature aimed at protecting consumer rights and preventing unauthorised deductions.
Some banks, including GTBank, UBA, and FCMB, have already notified customers of the updated procedure, which began rolling out earlier in June 2025.
Ogunbanjo praised the NCC and CBN for their collaborative leadership and called on telecom providers to improve the quality of USSD and voice services now that a more sustainable billing system has been established.
“Hopefully, the telcos will now use this to develop the telecom sector so that we won’t be having poor-quality services,” he noted.
The dispute dates back to 2019, when telecom operators accused banks of failing to remit fees collected from USSD services rendered to customers. A temporary resolution came in 2021, with the introduction of the flat N6.98 session fee — but compliance was inconsistent. Telcos repeatedly threatened service disruptions due to growing debts from banks.
Gbenga Adebayo, Chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON), described the transition as a major step forward:
“This transition marks a significant milestone in the evolution of Nigeria’s digital financial ecosystem. It aims to establish a transparent, sustainable, and customer-centric model for USSD service delivery.”
Adebayo also assured users that USSD codes for financial transactions like balance checks, transfers, and utility payments would remain active. Subscribers experiencing issues are advised to contact their mobile providers or respective banks, depending on the nature of the problem.
Despite the new billing model, the issue of outstanding debts remains. In a joint circular issued by the CBN and NCC on December 20, 2024, banks were mandated to comply with a phased payment plan:
60% of old debts to be paid by January 2, 2025
100% of outstanding debts to be cleared by July 2, 2025
85% of all new USSD charges to be settled by December 31, 2025
Sources within the telecom industry confirmed that many banks have yet to fully comply with these requirements, though ongoing dialogue has helped prevent further disconnection threats.
USSD remains a vital tool for digital and financial inclusion, especially among millions of Nigerians in rural and underserved areas who lack access to smartphones or internet-enabled devices. The direct billing model aligns with efforts to streamline digital payments while protecting consumer interests.
Experts argue that the success of the new system hinges on continued regulatory oversight and adherence to service quality benchmarks by telcos. Analysts also suggest the move could drive innovation in USSD-based services, including microloans, savings products, and bill payments.
As Nigeria pushes for greater digital integration, the resolution of the USSD billing crisis is widely viewed as a victory for stakeholders — ensuring that technology serves both economic growth and the everyday needs of the people.