Nigerian Banks and Telecoms Test End-User USSD Billing

Nigerian Communications Commission (NCC) sources have refuted a recent bank claim that costs for Unstructured Supplementary Service Data (USSD), sometimes referred to as end-user billing, began to be deducted from consumers’ airtime and claim that this have clarified that the process is still in the testing stage, despite statements made by a number of Nigerian banks that Unstructured Supplementary Service Data (USSD) transaction charges would now be subtracted from customers’ airtime beginning June 3, 2025.

The End-User Billing (EUB) model has not yet been implemented because technical integration and end-to-end testing between banks and telecom carriers are still happening, according to NCC sources who spoke anonymously because they lacked authorization.

The procedure isn’t operational yet. The banks and telecom providers are still finalizing and testing the process, and no start date has been set, according to NCC officials who would not want to be named since they were not authorized to talk to journalists.

One of the insiders told Nairametrics, “The technical integration and end-to-end testing are still working on, after which they will be communicated by respective banks to their customers on the commencement date, which has yet to be determined.”  

The declaration from banks, including UBA and FCMB, declared earlier this month that, as of June 3, 2025, fees for USSD transactions would be taken out of airtime rather than their bank accounts.

The banks asserted that the NCC, the telecom regulator, had ordered the adjustment.

In an announcement emailed to its clients on June 3, one of the banks stated, “In accordance with the directive of the Nigerian Communications Commission (NCC), please be informed that charges for USSD banking services will no longer be deducted from your bank account as of June 3, 2025.” 

In line with the NCC’s End-User Billing (EUB) approach, these charges will now be taken straight out of your cell airtime balance, it continued. 

While this is a dispute as banks and telcos are at loggerheads in disagreement, Telecom companies have also voiced their disapproval of the banks’ notification, calling it a heinous piece of false information that was created “to suit their selfish interests.”

“I don’t understand why the banks are manipulating contracts and falsifying data in order to further their own self-serving agendas. First of all, the information was a joint regulatory agreement between the NCC and the Central Bank of Nigeria (CBN), which was observed by the banks and telcos, according to Engr. Gbenga Adebayo, Chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON). 

“The banks were free to switch to the end-user billing method if they ultimately paid off all USSD debts owed to the telcos by June 2, 2025, provided that the migration model is clear and approved by the telcos,” he continued.

According to him, the telcos insisted that the migration process prevent a customer from receiving two bills; in other words, a subscriber would not have their airtime and money for the same services taken out of their bank account. This is why the clause was included.

While some banks have paid off their loans as of right now, most still haven’t. Because the banks have not yet paid off the USSD debt owing to the telecoms, the implementation cannot even start, even if all the procedures for switching to end-user billing have been completed flawlessly, Adebayo continued.

Some things we should be aware of since the former frequently neglect to remit to the latter after deducting from consumers’ accounts, Nigerian banks and telcos have been engaged in a protracted dispute over USSD debt.

The Central Bank of Nigeria (CBN) and the NCC ordered mobile network operators (MNOs) and DMBs to settle the long-standing N250 billion USSD debt in December 2024 in order to address the issue.

The NCC threatened to terminate the USSD service and release a list of banks that still owed telcos in January after telcos threatened to stop providing services due to the debt that banks had accrued.

Due to outstanding debts, the regulator ordered telcos to deactivate the USSD codes linked to nine banks by January 27.

MTN Nigeria announced on February 28 that banks have paid N32 billion of the N72 billion owed for the USSD debt.

Nigerian banks and telcos have not yet implemented the end-user billing model for USSD services, despite announcements to the contrary. Resolving outstanding debts and finishing technical testing, both of which are ongoing, are prerequisites for full deployment.

For confirmed updates on the official start date of airtime-based USSD invoicing, stay tuned.