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Subscribers to Pay N6.98 for USSD Service; Telcos Begin Direct Deduction Today

Nathaniel Irobi by Nathaniel Irobi
June 18, 2025
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Subscribers to Pay N6.98 for USSD Service; Telcos Begin Direct Deduction Today

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Telecom subscribers in Nigeria will now be charged directly by their mobile network operators for Unstructured Supplementary Service Data services starting Wednesday, June 18, 2025.

This was announced in a statement signed by Gbenga Adebayo, chairman of the Association of Licensed Telecommunications Operators of Nigeria, and Damian Udeh, the publicity secretary.

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The change is in line with the Nigerian Communications Commission’s determination of USSD pricing and services, developed in collaboration with the Central Bank of Nigeria and other stakeholders.

ALTON said the new billing model would allow mobile network operators to charge customers directly for USSD sessions, with charges deducted from the airtime balance at N6.98 per 120 seconds.

The association noted that customers would receive a prompt to opt in and approve the charge before it was deducted, and billing would only occur for successful sessions.

It assured that the change would not affect the availability or functionality of USSD banking services, and customers could continue using bank USSD codes with sufficient airtime.

“USSD services play a vital role in expanding access to financial services, particularly for unbanked and underbanked populations. However, the previous corporate billing model, where banks were billed by telecom operators, led to prolonged disputes over unpaid charges, service interruptions and uncertainty for customers.

“To address these challenges, the NCC’s 2025 determination introduced the End-User Billing (EUB) model, which allows mobile network operators to charge customers directly for USSD sessions.

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“To achieve the implementation of the EUB model, the CBN and NCC have stipulated that only banks that meet certain regulatory and operational conditions are permitted to migrate,” ALTON explained.

It advised customers to contact their mobile network operator for access issues and banks for transaction-related issues.

“To ensure a smooth transition, we urge subscribers to follow support guidelines, alternative digital banking channels such as mobile apps, internet banking, and ATMs remain fully operational,” said the association.

ALTON reiterated ALTON’s commitment to working closely with the NCC, CBN, financial institutions, and stakeholders to ensure a seamless, equitable, and beneficial transition for all parties, especially end-users.

The new method was adopted as a result of a running battle between Nigerian banks and telcos over USSD debt. To resolve the matter, in December 2024, the CBN and the NCC directed mobile network operators and DMBs to settle the long-standing USSD debt of N250 billion.

Following threats by telcos to withdraw services over the debt accumulated by banks, the NCC, in January, threatened to suspend the USSD service and publish a list of banks still owing telcos.

On January 15, the regulator directed telcos to disconnect the USSD codes assigned to nine banks by January 27 due to unpaid debts. On February 28, MTN Nigeria announced that it had received N32 billion out of a total of N72 billion from banks as partial payment for the USSD debt.

(NAN)

Tags: Subscribers
Nathaniel Irobi

Nathaniel Irobi

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