Telecommunications operators in Nigeria, including MTN, Airtel, Globacom, and 9Mobile, have issued a strong warning to banks over what they describe as misinformation regarding the billing process for Unstructured Supplementary Service Data (USSD) transactions.
The telcos, under the aegis of the Association of Licensed Telecom Operators of Nigeria (ALTON), have threatened to withdraw their support for USSD services provided to banks unless the financial institutions correct what the operators called misleading statements to customers and settle outstanding debts.
USSD services, commonly used for mobile banking and other transactions via short codes, have been a point of dispute between banks and telecom providers over who bears the cost and how the charges are deducted.
On Monday, several banks notified customers that, based on a directive from the Nigerian Communications Commission (NCC), USSD service charges would now be deducted directly from users' mobile airtime instead of their bank accounts. The banks stated that effective June 3, 2025, each USSD session would attract a ₦6.98 fee per 120 seconds, billed by the user’s mobile network after consent.
“In line with the directive of the Nigerian Communications Commission (NCC), please be informed that effective June 3, 2025, charges for USSD banking services will no longer be deducted from your bank account. These charges will now be deducted from your mobile airtime balance,” read the notice issued by several banks.
However, the telecom operators swiftly refuted the claim, accusing the banks of misrepresenting a regulatory agreement. ALTON Chairman, Engr. Gbenga Adebayo, clarified that the arrangement was not a unilateral directive from the NCC but a joint agreement between the NCC, the Central Bank of Nigeria (CBN), telecoms, and the banks.
According to Adebayo, the agreement stipulated that banks must first clear all outstanding debts owed to telecom operators for USSD services by June 2, 2025. Only then would they be allowed to transition to an "End-User Billing" (EUB) model—provided the migration process was transparent and ensured customers would not be charged twice.
He said: “I don’t understand why the banks are twisting the facts to serve their own interests. It was never a directive from the NCC. It was a consensus decision by the NCC and CBN, witnessed by telcos and the banks. The agreement clearly states that a shift to end-user billing would only happen after full debt repayment and mutual agreement on the implementation process.”
Adebayo noted that while some banks had settled their debts, most had not. As such, any claim of implementing the new billing system was premature and misleading.
“Our stance is clear: if the banks continue to act in bad faith and misinform the public, we may be forced to withdraw USSD support entirely,” Adebayo warned. “USSD is not a mandatory service; if the banks can do without it, they are free to. But they must honour their obligations first.”
The dispute adds another chapter to the long-standing USSD billing controversy, with customers caught in the crossfire. Industry observers fear the breakdown in cooperation between banks and telecoms could disrupt mobile banking services and further strain Nigeria's digital financial ecosystem.
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