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Nigeria’s telecom industry has introduced a new billing model for Unstructured Supplementary Service Data (USSD) services, allowing mobile operators like MTN, Airtel, 9mobile, and Glo to deduct USSD charges directly from subscribers’ airtime balances. The Nigerian Communications Commission (NCC) and Central Bank of Nigeria (CBN) approved the End-User Billing (EUB) framework, eliminating the role of banks as intermediaries in the payment process.
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The new model comes after mobile operators complained that banks were collecting service fees from customers without remitting the funds to operators, despite having received over N200 billion worth of services by the end of 2024. “Before now, banks would deduct the money from our accounts and fail to remit it to the telcos. It was always a problem,” said Adeolu Ogunbanjo, President of the National Association of Telecoms Subscribers (NATCOMS).
Under the revised model, subscribers will pay N6.98 per session lasting up to 120 seconds only after receiving a prompt to opt-in and approve the deduction. NATCOMS President described the EUB model as a long-overdue reform that brings transparency and accountability to the sector. “Hopefully, the telcos will now use this to develop the telecom sector so that we won’t be having poor-quality services,” Ogunbanjo added.
Gbenga Adebayo, ALTON Chair, said, “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.” The telecom executive assured subscribers that there would be no disruption to USSD services and that existing codes used for transactions like balance enquiries, fund transfers, and bill payments would remain active
The dispute over USSD billing dates back to 2019, when telecom operators accused banks of defaulting on agreed payments for services rendered. The CBN and NCC introduced an interim solution in 2021, but compliance remained inconsistent. The new EUB model aims to resolve the long-standing debt dispute between banks and telcos, with stakeholders expecting greater trust and efficiency across the digital finance value chain.
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