Despite recent announcements by some Nigerian banks that charges for USSD banking transactions would now be deducted directly from customers’ mobile airtime starting June 3, 2025, sources from the Nigerian Communications Commission (NCC) have clarified that the new billing system is not yet live.
According to insiders at the NCC, who spoke on condition of anonymity, banks and telecom operators are still in the process of finalizing technical integration and conducting thorough end-to-end testing. As a result, no official date has been set for the full rollout of the end-user billing (EUB) model.
Earlier this month, banks such as UBA and FCMB informed their customers that USSD transaction fees, which were previously deducted from bank accounts, would now be charged against their airtime balance. The banks cited a directive from the NCC as the reason for the change.
However, telecom operators have strongly disputed this claim. The Chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON), Engr. Gbenga Adebayo, described the banks’ announcement as misleading and said the transition to airtime billing can only happen after banks clear outstanding USSD debts owed to telcos.
“The agreement between the NCC, the Central Bank of Nigeria (CBN), banks, and telcos was clear: banks must settle all USSD debts by June 2, 2025, before migrating to the end-user billing model. Some banks have cleared their debts, but many have not, so the implementation is still on hold” – Adebayo explained.
The longstanding dispute over USSD debts has been a major source of tension between banks and telecom operators. Telcos have accused banks of withholding billions of naira owed for USSD services, prompting threats to suspend USSD codes for delinquent banks earlier this year.
For consumers, the shift to airtime billing means that USSD transaction fees, typically around ₦6.98 per 120 seconds, would be deducted from their mobile phone credit instead of their bank accounts. While this could simplify payment for telcos, many customers have expressed concerns about being charged twice or not being adequately informed.
While some banks have started notifying customers about the upcoming change, the NCC and telcos emphasize that the end-user billing system is still undergoing testing and cannot be fully implemented until all parties agree and outstanding debts are resolved.
Consumers are advised to stay alert for official communications from their banks and telecom providers regarding the final commencement date for USSD airtime billing.
