Telcos accuse Banks of misleading public over USSD billing directive

Tensions have flared again between Nigeria’s telecommunications and banking sectors as the Chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON), Engr. Gbenga Adebayo, publicly criticized Nigerian banks for allegedly misleading the public over the planned migration to an airtime-based billing system for USSD transactions.

Adebayo’s reaction comes after several banks, including UBA and FCMB, issued customer notifications earlier this month claiming that, starting June 3, 2025, charges for USSD-based financial services would be deducted from users’ airtime instead of their bank accounts. The banks attributed the change to a directive from the Nigerian Communications Commission (NCC).

However, Adebayo has vehemently refuted these claims, accusing the banks of “twisting facts” and misrepresenting a joint regulatory agreement for their own commercial interests.

“There was no directive from the NCC,” Adebayo stated. “What exists is a joint regulatory framework by the CBN and NCC, developed with input from both telcos and banks. This framework does not authorize the unilateral implementation of end-user billing by banks, especially while many of them are still in default on their USSD debts.”

According to him, the agreement only permitted a migration to the End-User Billing (EUB) model — where users would pay directly from their airtime — if all outstanding debts were fully paid by June 2, 2025, and necessary safeguards were in place to prevent double billing, in which users might be charged from both airtime and their bank accounts.

“As we speak, only a few banks have settled their debts. The rest are still owing. So even if the infrastructure was ready, the billing shift cannot begin under these circumstances,” Adebayo said.

The disagreement is the latest chapter in a years-long dispute over N250 billion in unpaid USSD service charges owed by banks to telecom operators. The conflict has led to repeated threats of disconnection and regulatory intervention.

In December 2024, the Central Bank of Nigeria (CBN) and the NCC jointly ordered Deposit Money Banks (DMBs) and Mobile Network Operators (MNOs) to reconcile and resolve the backlog. When compliance lagged, the NCC, in January 2025, issued an ultimatum, threatening to suspend USSD access and publicly name defaulters.

READ ALSO: NCC directs Banks to deduct USSD charges from customers’ airtime

Subsequently, on January 15, the NCC directed telcos to begin disconnecting USSD short codes assigned to nine banks over non-payment, setting a final compliance deadline of January 27, 2025.

By February 2025, MTN Nigeria confirmed that it had received a partial settlement of N32 billion out of the N72 billion it was owed — an indication that the wider industry debt remains far from resolved.

The conflicting narratives from banks and telcos now risk confusing millions of Nigerians who rely on USSD codes for basic financial services such as money transfers, airtime purchases, and bill payments — especially in areas with limited internet access.

Adebayo’s comments reflect mounting frustration within the telecoms sector, which feels unfairly burdened by providing a critical banking infrastructure without receiving timely compensation.

“We must not allow one sector to continually distort facts and weaponize public communication. The NCC and CBN created a roadmap, and all parties must follow it transparently and responsibly,” Adebayo warned.

With the June 3 date around the corner, pressure is building on banks, telcos, and regulators to harmonize their positions and communicate clearly with the Nigerian public to avoid disruptions in USSD banking services and further deterioration of trust between the two critical sectors.