Beginning today, mobile phone users in Nigeria will start paying directly from their airtime balance for services accessed via Unstructured Supplementary Service Data (USSD).
This marks a major change in how financial transactions over USSD are billed in the country.
The new billing arrangement follows a directive issued two weeks ago by the Nigerian Communications Commission (NCC), which instructed commercial banks to stop deducting USSD-related fees from customer bank accounts.
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In response, several banks have informed customers via email that charges for USSD transactions will now be taken from their mobile airtime balance.
Confirming the rollout on Wednesday, the chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), Gbenga Adebayo, emphasized that this adjustment is a crucial milestone in promoting transparency and sustainability within Nigeria’s digital financial services sector.
According to Adebayo, the new arrangement reflects regulatory policies crafted by the NCC in collaboration with the Central Bank of Nigeria (CBN) and other relevant stakeholders.
These policies aim to ensure that customers are appropriately billed for USSD sessions without compromising service accessibility.
He noted that telecom providers will now deduct a standard fee of ₦6.98 for every 120-second USSD session directly from a user’s airtime. Customers will be asked to approve this deduction before the session is billed.
“The change is in line with the NCC’s determination of USSD pricing and services, developed in collaboration with the Central Bank of Nigeria (CBN) and other stakeholders,” Adebayo said.
He further reassured users that the billing transition will not disrupt the availability or functionality of USSD banking services. As long as customers maintain sufficient airtime, they can continue to use their bank’s USSD codes without any issues.
“USSD services play a vital role in expanding access to financial services, particularly for unbanked and underbanked populations,” he said.
Adebayo explained that the former model, where telecom companies billed banks for USSD usage, had created ongoing disputes due to non-payment, leading to service disruptions and instability for customers.
“However, the previous corporate billing model where banks were billed by telecom operators led to prolonged disputes over unpaid charges, service interruptions and uncertainty for customers,” he noted.
“To address these challenges, the NCC’s 2025 determination introduced the End-User Billing (EUB) model, which allows mobile network operators to charge customers directly for USSD sessions,” he added.
He also mentioned that only financial institutions that fulfill specific operational and regulatory conditions as outlined by both the CBN and NCC will be eligible to transition to this new billing method.
“To achieve the implementation of the EUB model, the CBN and NCC have stipulated that only banks that meet certain regulatory and operational conditions are permitted to migrate,” Adebayo stated.
He advised customers experiencing issues with USSD access to reach out to their respective telecom providers, while banking-related concerns should be directed to their financial institutions.
“To ensure a smooth transition, we urge subscribers to follow support guidelines, alternative digital banking channels such as mobile apps, internet banking, and ATMs remain fully operational,” he said.
Adebayo concluded by affirming ALTON’s ongoing partnership with regulators, banks, and other industry players to guarantee that the new billing system benefits all stakeholders—particularly everyday users of USSD banking.
Adebayo reiterated ALTON’s commitment to working closely with the NCC, CBN, financial institutions, and stakeholders to ensure a seamless, equitable, and beneficial transition for all parties, especially end-users.
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