Telecom operators in Nigeria are threatening to pull the plug on USSD banking services after banks announced that the Nigerian Communications Commission (NCC) directed a switch from account deductions to airtime charges for USSD transactions. The telcos, including MTN, Airtel, Glo, and 9mobile, claim this information is misleading and could damage public trust.
On May 29, several banks sent out messages to customers informing them that, beginning June 3, 2025, charges for USSD transactions would no longer be deducted from their accounts. Instead, the charges—₦6.98 per 120 seconds—would be billed directly from users’ mobile airtime. The banks attributed the change to an NCC directive. “Under this new billing structure, each USSD session will attract a charge of ₦6.98… deducted directly from your airtime,” the notice read. Users were also told they would receive a consent prompt at the start of every session.
But this narrative was quickly challenged by the Association of Licensed Telecom Operators of Nigeria (ALTON), the industry body representing mobile network providers. In a statement to Vanguard, ALTON Chairman, Engr Gbenga Adebayo, dismissed the banks’ claims as “gross misinformation deliberately hatched to suit their selfish interests.” He clarified that the billing model was not imposed by the NCC alone but was the result of a joint agreement between the NCC and the Central Bank of Nigeria (CBN), with input from both the banks and telcos.
Debt Stalemate May Derail USSD Migration
Adebayo further stated that the agreement was conditional: banks were only allowed to migrate to the end-user billing model if they cleared their outstanding USSD debts by June 2, 2025. “As we speak, some banks have paid, but the majority are still owing,” he said, explaining that until those debts are fully settled, the new model cannot be enforced. He also emphasised the telcos’ insistence on transparency to avoid double billing of customers.
ALTON now warns that it may be forced to suspend network support for banks’ USSD platforms if the situation continues. “It is not a must-have,” Adebayo said, implying that banks could explore other channels if they fail to honour their obligations.
This showdown between the financial and telecom sectors echoes a long-running struggle over USSD charges, with customers often caught in the middle. A previous report by the Nigerian Tribune shows how the ₦6.98 fee was first introduced to settle disputes over who should bear the cost of USSD infrastructure.
As of now, the NCC has not issued a public statement clarifying its stance. Meanwhile, customers remain in limbo, unsure of how—or where—their money might be deducted next.
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[…] tug-of-war is brewing between Nigerian banks and telecom operators over the official rollout of end-user billing for USSD transactions. Despite announcements from banks like UBA and FCMB claiming that deductions from customers’ […]