USSD billing policy End User Billing earns telecom support as customers now pay directly from airtime, ending telco-bank disputes on service charge remittances

[dropcap]U[/dropcap]SSD billing policy End User Billing has received strong support from the Association of Licensed Telecommunications Companies of Nigeria, following its introduction by the Nigerian Communications Commission and the Central Bank of Nigeria.

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

The new system, which authorises the direct deduction of USSD charges from customers’ airtime, is expected to resolve persistent issues between banks and telecom operators.

Gbenga Adebayo, chairman of ALTON, affirmed in an exclusive interview that the new model should bring lasting resolution to the remittance deadlock that has plagued telcos and banks for years.

Under the old regime, banks deducted USSD charges from customer accounts but frequently failed to remit these payments to the operators. This created a financial bottleneck that endangered service continuity.

Adebayo explained that while banks successfully collected payments, many failed to transfer the funds, often citing technical discrepancies, error reports, or accounting challenges.

With the new End User Billing model, however, the responsibility now lies directly with the subscriber, removing banks from the equation entirely.

“So it means that since you are the account holder, you are the number holder and once you subscribe to the USSD system, the charges will be taken from your airtime,” he said, applauding the simplicity and accountability this structure brings.

The policy change will allow telecom operators to receive payments seamlessly and instantly, without relying on bank intermediaries.

The NCC has confirmed the shift on its website, stating that the new billing format aligns USSD charges with how consumers already pay for calls, data, and SMS.

For consumers, this reform promises enhanced transparency and better cost control. Immediate airtime deductions provide real-time clarity, as users see charges instantly after every USSD banking session.

This eliminates the uncertainty associated with delayed bank deductions, offering a more user-friendly transaction experience.

The model also provides consumers with the autonomy to opt in or out of USSD-based banking services.

The End User Billing structure aims to eliminate the multi-billion naira debt disputes that have strained relations between mobile network operators and financial institutions.

It also seeks to improve the quality of consumer experience and ensure operators are fairly compensated for providing USSD infrastructure.

To prevent double billing, regulators have introduced strict safeguards. Banks are instructed to stop charging customers once they are on the EUB system, and telecoms are required to provide end-of-session notifications that clearly state what has been deducted.

The cost to consumers remains at N6.98 per USSD session lasting up to 120 seconds. This is considered more transparent and cost-effective compared to previous arrangements, some of which were calculated on a per-second basis.

Implementation of the policy will proceed in phases, as banks and their Value-Added Service partners complete technical integrations, testing, and the signing of service-level agreements.

Customers will be notified of the exact commencement date by their respective banks once all back-end preparations are complete.

Consumers experiencing difficulties can contact their network provider for platform-related issues or reach out to their banks regarding specific transaction concerns.

Both institutions are under regulatory obligation to provide timely support and ensure customer satisfaction.

Also read: Nigerian Banks clear USSD debt, prevent service disruption

As this reform takes root, stakeholders anticipate that Nigeria’s mobile banking and telecom sectors will experience smoother collaboration, fairer billing, and improved public confidence in digital financial services.