LAGOS, Nigeria – Starting today, June 18, 2025, telecom subscribers in Nigeria will notice a significant shift in how they are charged for Unstructured Supplementary Service Data (USSD) services, a critical platform for mobile banking and other financial transactions. Mobile network operators (MNOs), including MTN Nigeria, Airtel, Globacom, and 9Mobile, will now deduct USSD fees directly from subscribers’ airtime balances at a standardized rate of ₦6.98 per 120-second session. This change, announced by the Association of Licensed Telecommunications Operators of Nigeria (ALTON), marks the adoption of the End-User Billing (EUB) model, a policy developed in collaboration with the Nigerian Communications Commission (NCC) and the Central Bank of Nigeria (CBN). The shift aims to resolve longstanding disputes between telecom operators and Deposit Money Banks (DMBs) over unpaid USSD debts, which had ballooned to an estimated ₦250 billion by late 2024.
The transition to the EUB model ends the previous corporate billing system, where banks were responsible for collecting USSD fees from customers’ bank accounts and remitting them to telecom operators. This arrangement led to prolonged conflicts, as banks often delayed or failed to remit payments, resulting in service disruptions and uncertainty for millions of users. ALTON Chairman Gbenga Adebayo described the new model as a “critical milestone in building a more transparent, sustainable, and user-focused digital financial ecosystem.” He emphasized that subscribers will receive a consent prompt before any charges are deducted, ensuring transparency and control. Charges will only apply to successfully completed sessions, and users can opt out of USSD services if they prefer alternative channels like mobile apps, internet banking, or ATMs.
The roots of this change trace back to a years-long feud between telecom operators and banks, which intensified as unpaid USSD debts accumulated. By November 2024, the NCC reported that 18 banks owed telecom firms approximately ₦160 billion, with some invoices dating back to 2020. The dispute prompted threats from telcos to suspend USSD services, a move that would have disrupted access to mobile banking for millions, particularly in rural and underserved areas where USSD remains a lifeline for financial inclusion. In December 2024, the CBN and NCC intervened, issuing a joint circular mandating banks and MNOs to resolve the debt crisis. The directive outlined a three-phase payment plan: 60% of pre-API invoices by January 2, 2025; full settlement by July 2, 2025; and 85% of post-API invoices by December 31, 2024. Despite progress—MTN Nigeria reported receiving ₦32 billion of its ₦72 billion claim by February 2025—tensions persisted, with some banks accused of premature announcements about the EUB transition.
The NCC and CBN have introduced safeguards to protect consumers under the new model. Banks and telecom operators are required to notify users in advance of the billing change, and customers must confirm charges via a prompt at the start of each session. The NCC has also mandated end-of-session notifications to clearly state the amount deducted, addressing concerns about hidden fees. To prevent double billing, where users might be charged from both airtime and bank accounts, the regulators have emphasized strict compliance, with sanctions for non-compliant banks or telcos. Consumers facing issues can contact the CBN at +234-70-0225-5226 or [email protected], or the NCC via its toll-free line at 622 or [email protected]
The EUB model has sparked mixed reactions. For telecom operators, it ensures direct payment at the point of service, eliminating delays and reducing administrative burdens. This real-time revenue model is expected to support infrastructure investments and service innovation. However, some subscribers, particularly low-income users and those in rural areas, worry about the financial burden of upfront airtime deductions. USSD’s accessibility—requiring only a basic mobile phone and no internet connection—has made it a cornerstone of Nigeria’s financial inclusion goals, serving millions who lack access to smartphones or reliable internet. Critics argue that the ₦6.98 per 120-second fee, while standardized since March 2021, could deter usage among cost-sensitive users, potentially undermining access to essential banking services.[](https://techcabal.com/2025/06/10/why-telcos-will-now-deduct-ussd-charges-from-your-airtime/)[](https://www.tekedia.com/ncc-directs-banks-to-deduct-ussd-charges-from-users-mobile-airtime/)[](https://blueprint.ng/is-this-the-end-of-ussd-banking-in-nigeria/)
Banks, meanwhile, are nudging customers toward digital alternatives like mobile apps and internet banking, which offer richer data analytics and marketing opportunities. Some analysts suggest this shift could signal a gradual phase-out of USSD banking, as it becomes less strategically viable for banks under the new billing structure. “For the average urban user, ₦6.98 may seem trivial, but for rural dwellers and petty traders, this is a heavy toll,” noted a recent industry analysis. The psychological shift from “free” or indirectly billed services to upfront airtime deductions may also influence user behavior.[](https://blueprint.ng/is-this-the-end-of-ussd-banking-in-nigeria/)
Despite these concerns, ALTON and the NCC remain optimistic about the EUB model’s potential to enhance transparency and reliability. Adebayo reiterated ALTON’s commitment to working with regulators, banks, and stakeholders to ensure a seamless transition. “USSD remains a vital tool for financial inclusion, especially for Nigeria’s unbanked and underbanked population,” he said, highlighting the importance of maintaining service availability. As the new billing system takes effect, all eyes are on how subscribers will adapt and whether the resolution of the ₦250 billion debt saga will finally bring stability to Nigeria’s digital financial ecosystem.[](https://leadership.ng/ussd-stands-at-%25E2%2582%25A66-98-per-120-seconds-as-end-user-billing-begins/)[](https://www.asabametro.com/breaking-airtime-now-required-for-ussd-transactions-from-june-18-telcos/)
The rollout of the EUB model comes amid broader efforts to strengthen Nigeria’s telecom and financial sectors. With the NCC and CBN actively monitoring compliance, the transition is expected to pave the way for a more equitable and efficient USSD ecosystem, benefiting both operators and consumers in the long term. For now, subscribers are advised to stay informed, review consent prompts carefully, and explore alternative banking channels if the new charges prove prohibitive.
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