Nigerian telecommunications operators and companies have said that their mobile customers will start paying directly for USSD services using their airtime on Wednesday, June 18, 2025.
According to a recent decision from the Nigerian Communications Commission (NCC), this signifies the official switch to the End-User Billing (EUB) system.
The notice that some banks had earlier this month that the deduction would begin on June 3 has been overruled by the announcement made by the Association of Licensed Telecom Operators of Nigeria (ALTON).
ALTON claims that the switch to end-user paying comes after the NCC released the Determination of USSD Pricing and Services, which was created in cooperation with the Central Bank of Nigeria (CBN) and other important parties.
The openness regarding USSD fees as ALTON stated that the goal of this move is to provide a framework for providing USSD services that is more transparent, sustainable, and user-friendly, particularly in light of Nigeria’s expanding digital financial environment.
USSD session fees, which currently stand at N6.98 per 120 seconds, will now be taken straight out of consumers’ airtime under the new structure.
Only successful sessions will be invoiced, and customers will be prompted to opt in before the payment is applied. According to ALTON, this will improve customer satisfaction and prevent double billing.
In the past, telecoms used a corporate billing model to charge banks for USSD services, which frequently resulted in disputes over unpaid charges.
Millions of users who depend on USSD codes for financial transactions were affected by the frequent service interruptions caused by these disagreements.
In the press statement, ALTON Chairman Engr. Gbenga Adebayo said, “Mobile network operators will now charge customers directly, ensuring a more accountable and efficient system.”
According to ALTON, banks must fulfill certain operational and regulatory requirements in order to be eligible for the switch to the new model, including providing consumers with ample notice of the billing change by informing their respective customers to the bank on the USSD service.
“The CBN and NCC have stipulated that only banks that meet certain regulatory and operational conditions are permitted to migrate in order to achieve the implementation of the EUB model,” he said.
Customers must also be informed on how the charges would be charged, it was stated.
In order to guarantee a smooth transition, ALTON has additionally released support guidelines:
Banks and telcos are both required to offer prompt customer service.
Customers should get in touch with their mobile network operator if they are having trouble accessing USSD codes.
Customers are encouraged to contact their banks regarding transaction errors.
ALTON has guaranteed that alternative digital banking channels, such as mobile apps, online banking, and ATMs, will continue to function fully even if the move is anticipated to affect how customers engage with mobile financial services.
“USSD is still essential to expanding financial inclusion in Nigeria, particularly for low-income and groups of peoples in communities not provided with enough resources or social services to meet the needs. The statement further stated that ALTON is dedicated to collaborating with financial institutions and authorities to guarantee that this transformation is advantageous to all users.
We are expected to be aware that since the Nigerian banks have failed to frequently neglect to remit to the telcos after deducting from consumers’ accounts, Nigerian banks and telcos have been engaged in a protracted dispute over USSD debt for years.
The Central Bank of Nigeria (CBN) and the NCC advised 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 said it would end 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.
The End-User Billing (EUB) model was introduced by the NCC in 2025 to address these issues, enabling mobile network providers to bill users directly for USSD sessions.
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