From Wednesday, June 18, 2025, telecom subscribers in Nigeria will begin paying directly for Unstructured Supplementary Service Data (USSD) services, as mobile network operators implement a new billing model approved by regulatory authorities.
This development was announced in a joint statement by Mr. Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), and Mr. Damian Udeh, the association’s Publicity Secretary.
According to Adebayo, the shift follows the Nigerian Communications Commission’s (NCC) 2025 USSD pricing determination, developed in collaboration with the Central Bank of Nigeria (CBN) and other key stakeholders.
Under the new billing framework—known as the End-User Billing (EUB) model—subscribers will be charged N6.98 for every 120 seconds of USSD use, with the cost deducted directly from their airtime balance. Before any deductions are made, users will receive a prompt to opt in and confirm the charge. Only successful sessions will be billed.
Adebayo stressed that the new model would not disrupt access to banking services via USSD codes, provided subscribers have sufficient airtime. He also highlighted the importance of USSD in promoting financial inclusion, especially among Nigeria’s unbanked and underbanked populations.
“The former corporate billing model, where banks were charged by telecom operators, resulted in longstanding disputes, unpaid debts, service disruptions, and confusion for users,” Adebayo said. “To address these challenges, the NCC approved a direct-to-user model, ensuring transparency and a smoother experience.”
He added that only banks meeting specific regulatory and operational requirements will be allowed to migrate to the new model, as stipulated by both the NCC and CBN.
Subscribers are advised to contact their telecom service providers for technical issues and their banks for transaction-related concerns. Adebayo also encouraged users to explore alternative digital banking platforms such as mobile apps, internet banking, and ATMs.
ALTON reaffirmed its commitment to working with the NCC, CBN, and financial institutions to ensure a smooth and equitable rollout that benefits all stakeholders, particularly end-users.
This change comes in the wake of a protracted dispute between Nigerian banks and telecom operators over a USSD debt estimated at N250 billion. In December 2024, the CBN and NCC jointly intervened, instructing both parties to settle the debt.
In January 2025, the NCC threatened to suspend USSD services and publish a list of defaulting banks. Subsequently, on January 15, the Commission directed telecom operators to disconnect the USSD codes of nine banks by January 27 due to non-payment.
By February 28, MTN Nigeria confirmed receiving N32 billion out of the N72 billion owed by banks as part payment, signaling partial progress toward resolving the financial standoff.
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