Effective June 3, 2025, the Nigerian Communications Commission (NCC) has mandated an important change in the billing process for USSD banking transactions across Nigeria. Charges for USSD services will no longer be deducted directly from customers’ bank accounts again but will instead be debited from their mobile airtime balances, marking the official start of the End-User Billing (EUB) model with the aim of resolving a long-standing dispute between banks and telecom operators.
The directive follows years of unresolved disagreements between Deposit Money Banks (DMBs) and Mobile Network Operators (MNOs) over the payment for USSD services used in banking transactions. Telecom companies had accused banks of deducting USSD fees from customers but failing to remit payments, leading to a debt estimated at over N250 billion. The Central Bank of Nigeria (CBN) and NCC jointly intervened, issuing directives to settle outstanding debts and streamline billing processes.
Under the new EUB framework, customers will be charged ₦6.98 for every 120 seconds of USSD session time, with airtime deductions made only after user consent is obtained at the start of each session. This change ensures transparency and gives users control over their USSD transactions. Banks like United Bank for Africa (UBA) have already informed customers about the transition and reassured them of the availability of alternative digital banking channels such as mobile apps and internet banking.
The NCC and CBN’s joint circular also introduced the “10-second rule,” stipulating that USSD sessions lasting less than ten seconds will not be billable, a measure designed to prevent unfair charges and enhance consumer trust. Furthermore, banks and telecom operators have been instructed to discontinue all ongoing litigation related to the USSD debt dispute and to comply fully with payment schedules set by regulators, with sanctions threatened for non-compliance.
Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), outlined the significance of this move, noting that the dispute has persisted since 2019 and that the adoption of the EUB model represents a critical step toward resolving billing conflicts and ensuring sector stability.
The USSD billing conflict has affected millions of Nigerians relying on mobile banking, with telecom operators threatening to disconnect banks from USSD services due to unpaid fees. The NCC and CBN’s coordinated approach seeks to balance the interests of telecom operators, banks, and consumers while safeguarding uninterrupted access to essential financial services.
The transition to EUB is contingent on banks settling a significant portion of outstanding debts by set deadlines, with 85% of post-API invoices due by the end of 2024 and 60% of pre-API invoices required as full settlement.
As the new USSD billing process takes effect, consumers are advised to monitor their airtime balances and consent to charges consciously. The NCC and CBN have pledged ongoing public enlightenment efforts to support a smooth transition.
Meanwhile, Daily Tech Nigeria recently reported that NCC orders telecom operators to notify consumers ahead of service disruptions.
