Telcos take over USSD billing as CBN, NCC approve direct deductions from airtime

Nigerian telcos can now charge USSD fees directly from subscribers’ airtime, ending a long-standing dispute with banks over N200bn in unremitted payments

[dropcap]T[/dropcap]elecommunications operators in Nigeria will now directly access revenue from Unstructured Supplementary Service Data services, following a landmark regulatory shift by the Nigerian Communications Commission and the Central Bank of Nigeria.

Also read: USSD billing policy end user billing, gains telecom industry backing

The policy change, known as the End-User Billing (EUB) framework, officially empowers telcos—MTN, Airtel, 9mobile and Glo to deduct USSD charges straight from subscribers’ airtime balances.

This move eliminates banks as intermediaries in the billing process, a point of friction that has plagued the sector for years.

Operators had long complained that banks collected service charges from customers without remitting them, accumulating over ₦200 billion in unpaid dues by the end of 2024.

The new billing model aims to resolve this conflict while improving transparency and service efficiency.

Subscribers will now be charged ₦6.98 per session, lasting up to 120 seconds, only after receiving a prompt to opt in and approve the deduction.

This arrangement, stakeholders say, promotes customer awareness and consent in line with best practices.

President of the National Association of Telecoms Subscribers, Adeolu Ogunbanjo, praised the development as a long-overdue reform.

“Before now, banks would deduct the money from our accounts and fail to remit it to the telcos. It was always a problem,” he said, urging telcos to now invest in better service quality.

The Association of Licensed Telecom Operators of Nigeria confirmed the rollout in a statement on Wednesday, noting that some banks including GTB, UBA, and FCMB had already begun notifying customers of the new arrangement.

According to ALTON Chair, Gbenga Adebayo, “This transition marks a significant milestone in the evolution of Nigeria’s digital financial ecosystem.

It aims to establish a transparent, sustainable, and customer-centric model for USSD service delivery.”

USSD codes used for services such as balance checks, fund transfers, and utility payments will remain active.

Subscribers experiencing challenges are advised to contact their mobile providers or respective banks, depending on the nature of the issue.

The new billing structure builds on a 2021 interim agreement that introduced the ₦6.98 flat rate, collected by banks on behalf of telcos.

However, the system faltered as banks reportedly failed to fully comply, prompting the industry-wide switch to direct billing.

The CBN and NCC, in a joint circular issued on December 20, 2024, stipulated conditions for the transition.

Banks must clear historical debts in three phases: 60 per cent of old bills by January 2, 2025; full settlement of pre-existing bills by July 2, 2025; and 85 per cent of new bills paid by December 31, 2025.

Adebayo confirmed that the telecom sector was technically prepared for the EUB model, but banks had lagged in readiness and compliance.

With that gap now closing, stakeholders expect smoother service delivery and renewed trust across Nigeria’s digital finance landscape.

USSD remains vital for financial inclusion, especially in rural communities with limited access to internet-enabled devices.

Also read: USSD banking charges now deducted from airtime from June 3

The reform, experts say, ensures the sustainability of this service while aligning with subscriber rights and telecom accountability.