Telcos begin direct USSD airtime charges from June 18

Beginning today, Wednesday, June 18, 2025, Nigerian mobile subscribers will start paying directly for Unstructured Supplementary Service Data (USSD) services from their airtime, following the nationwide implementation of the End-User Billing (EUB) model.

The Association of Licensed Telecommunications Operators of Nigeria (ALTON) made the announcement in a statement that confirmed the formal commencement of the new billing regime, which overrides earlier communications by some banks that suggested the deductions would begin on June 3.

The migration to the end-user billing model stems from a recent directive issued by the Nigerian Communications Commission (NCC), as part of its Determination of USSD Pricing and Services policy.

READ ALSO: Telcos accuse Banks of misleading public over USSD billing directive

The directive was developed in consultation with the Central Bank of Nigeria (CBN) and other industry stakeholders to resolve long-standing disputes over USSD charges and enhance transparency.

Under the new arrangement, telcos will now charge users directly N6.98 per 120-second session, instead of billing the banks, a practice that had led to frequent inter-sectoral disputes, service disruptions, and customer dissatisfaction.

Users will also receive prompts to opt-in before charges are applied, and only successful sessions will be billed—effectively eliminating issues such as double billing and unaccounted deductions.

“With this transition, mobile network operators will now charge customers directly, ensuring a more accountable and efficient system,” saysALTON Chairman, Engr. Gbenga Adebayo

Previously, USSD services were offered under a corporate billing model, where telecom operators billed deposit money banks (DMBs) for sessions initiated by customers. However, the arrangement was marred by non-remittance of payments by banks, leading to a N250 billion debt dispute that has persisted for years.

In late 2024, the CBN and NCC intervened, issuing a joint directive for banks and telcos to resolve the matter.

The NCC, in a bold move in January 2025, ordered telcos to disconnect USSD shortcodes assigned to nine defaulting banks, and warned of further sanctions if debts remain unpaid. Subsequently, MTN Nigeria disclosed in February that it received N32 billion out of its N72 billion USSD receivables from banks.

READ ALSO: Telcos accuse Banks of misleading public over USSD billing directive

The situation underscored the need for a sustainable model that protects all parties—telecom providers, financial institutions, and consumers.

ALTON has issued support guidelines to ensure the transition is seamless and user-friendly. It also emphasized that customers should be adequately notified and educated about the billing change to avoid confusion.

In the event of service issues, telcos and banks are required to provide responsive customer support. ALTON also reassured the public that alternative digital banking channels such as mobile banking apps, internet banking platforms, and ATMs remain operational and unaffected.

“USSD remains critical in deepening financial inclusion across Nigeria, especially for underserved and low-income populations,” says ALTON’s official statement

USSD services have been a cornerstone of Nigeria’s digital financial inclusion strategy, particularly for users without smartphones or reliable internet access.

According to data from industry analysts, more than 60 million Nigerians rely on USSD platforms for daily banking, airtime top-ups, and utility payments.

The shift to end-user billing is expected to streamline the delivery of these services, enhance accountability, and eliminate the friction that previously existed between financial institutions and telecom providers.

While some users may be concerned about additional costs, regulators argue that the transparency and reliability introduced under the new regime will outweigh the inconvenience of direct billing.