Mobile network operators have begun charging bank customers directly for Unstructured Supplementary Service Data (USSD) services.
Gatekeepers News reports that this follows a recent directive from Nigerian Communications Commission (NCC) instructing deposit money banks (DMBs) to stop deducting USSD fees directly from customer accounts.
Banks have since notified their customers via email that USSD charges will now be deducted from their mobile airtime instead of their bank balances.
Confirming the development on Wednesday, Gbenga Adebayo, Chairman of Association of Licensed Telecommunications Operators of Nigeria (ALTON), said the USSD transaction deduction has taken effect.
He described the move as a significant step toward enhancing transparency and ensuring the long-term sustainability of digital financial services.
Adebayo noted that the change is based on NCC’s 2025 pricing framework for USSD services, developed in collaboration with the Central Bank of Nigeria (CBN) and other industry stakeholders.
Under the new End-User Billing (EUB) model, telcos will deduct ₦6.98 per 120 seconds directly from users’ airtime for USSD sessions.
Customers will receive a prompt to opt in and confirm the deduction before any charge is made, and charges will only apply to successful USSD sessions.
The chairman emphasised that this new model would not disrupt the availability or functionality of USSD banking services. Customers can continue using bank USSD codes provided they have enough airtime.
He said, “ USSD services play a vital role in expanding access to financial services, particularly for unbanked and underbanked populations.”
“However, the previous corporate billing model where banks were billed by telecom operators led to prolonged disputes over unpaid charges, service interruptions and uncertainty for customers.”
“To address these challenges, the NCC’s 2025 determination introduced the End-User Billing (EUB) model, which allows mobile network operators to charge customers directly for USSD sessions.”
“To achieve the implementation of the EUB model, the CBN and NCC have stipulated that only banks that meet certain regulatory and operational conditions are permitted to migrate.”
Adebayo advised customers to contact their mobile network operator for access issues and banks for transaction-related issues.
He said, “To ensure a smooth transition, we urge subscribers to follow support guidelines, alternative digital banking channels such as mobile apps, internet banking, and ATMs remain fully operational.”
The chairman reaffirmed ALTON’s commitment to working with NCC, CBN, and financial institutions to guarantee a fair and seamless experience for all parties, especially end users.
