Contrary to claims by several Nigerian banks that Unstructured Supplementary Service Data (USSD) transaction charges would now be deducted from customers’ airtime starting June 3, 2025, sources from the Nigerian Communications Commission (NCC) have clarified that the process is still in the testing phase.
According to NCC insiders who spoke anonymously due to lack of authorization, the implementation of the End-User Billing (EUB) model has not yet begun, as technical integration and end-to-end testing between banks and telecom operators are still ongoing.
“The process is not yet live. Once testing is complete, banks will officially notify customers of the commencement date,” an NCC source told TechTV.
Banks Jump the Gun
Earlier in June, commercial banks including UBA and FCMB issued notices to customers announcing a shift in USSD charges from bank account deductions to airtime deductions, allegedly in line with an NCC directive.
“Effective June 3, 2025, USSD banking service charges will no longer be deducted from your bank account but from your mobile airtime balance,” one of the notices read.
However, this announcement appears to have caused confusion, especially among telecom operators.
Telcos Dispute Banks’ Claims
Reacting to the banks’ announcements, the Association of Licensed Telecom Operators of Nigeria (ALTON) criticized the communication as misleading.
“There was never a unilateral directive from the NCC. What exists is a joint regulatory agreement between the NCC and the CBN,” said ALTON Chairman, Engr. Gbenga Adebayo.
He explained that the agreement allows banks to migrate to end-user billing only after settling outstanding USSD debts, which amount to billions of naira.
“The telcos insisted on a transparent billing system to avoid double charges—where customers are billed from both airtime and bank accounts. Yet, many banks are yet to fully clear their debts,” Adebayo added.
Background to the Crisis
The prolonged dispute over USSD charges stems from a N250 billion debt owed by Deposit Money Banks (DMBs) to telecom operators. The debt arose from past USSD transactions for which banks collected fees from customers but failed to remit to telcos.
Efforts by the Central Bank of Nigeria (CBN) and the NCC to resolve the impasse date back to December 2024. In January 2025, the NCC even threatened to suspend USSD services and publicly name defaulting banks. By late February, MTN Nigeria confirmed it had received N32 billion of a N72 billion USSD debt from the banks.
The Bottom Line
Despite announcements, Nigerian banks and telcos are yet to commence the end-user billing model for USSD services. Full implementation hinges on the resolution of outstanding debts and the completion of technical testing—both of which are still in progress.
Stay tuned for verified updates on when airtime-based USSD billing will officially begin.
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