Telecommunications operators under the Association of Licensed Telecommunications Operators of Nigeria (ALTON) have refuted claims by Deposit Money Banks (DMBs) that the Nigerian Communications Commission (NCC) directed a shift in the billing model for USSD transactions—from bank account deductions to airtime charges.
Several banks, including United Bank for Africa (UBA), First City Monument Bank (FCMB), and Fidelity Bank, recently began notifying customers that, effective June 3, 2025, USSD service fees would be deducted directly from their mobile airtime balances. The move has triggered public concern over transparency and the potential impact on users.
ALTON Chairman, Gbenga Adebayo, dismissed the banks’ statements, insisting that the NCC never issued such a directive. “We are surprised that the banks are using the NCC as cover to justify this transition. The NCC does not regulate banks; that role belongs to the Central Bank of Nigeria (CBN),” he told The PUNCH.
Adebayo explained that while telecom operators are technically prepared for end-user billing, most banks have yet to meet critical regulatory and operational conditions. These include clearing historical debts, implementing robust error reporting systems, and ensuring customer protection against double billing.
According to a joint circular issued by the CBN and NCC on December 20, 2024, banks must fulfill a three-phase payment plan before airtime billing can be adopted. The roadmap requires banks to pay 60% of outstanding debts by January 2, 2025; settle all prior debts by July 2, 2025; and pay 85% of current invoices by December 31, 2025.
“The transition is conditional. No migration should occur unless banks comply with all stipulated terms,” Adebayo stressed, warning that premature implementation could result in duplicate deductions and customer frustration.
Despite this, some banks have already issued updates to customers. UBA stated, “In line with the directive of the NCC, please be informed that effective June 3, 2025, charges for USSD banking services will no longer be deducted from your bank account but from your airtime balance.” The bank added that each USSD session would cost ₦6.98 per 120 seconds.
FCMB also advised customers that the airtime deduction model was in place, while Fidelity Bank confirmed it had started notifying clients. However, internal sources at other banks indicated confusion or lack of readiness for the new model.
The change has sparked mixed reactions on social media. Some users see it as a win for telecom companies, while others warn it may marginalize users with low airtime balances. “This move could exclude people without airtime from accessing banking services,” wrote one user on X (formerly Twitter).
Adebayo warned that without synchronized systems between banks and telecom operators, users may face double billing and unresolved disputes. “If banks deduct from accounts while telcos charge from airtime, customers will suffer. That’s why a structured error resolution protocol is essential,” he said.
He also reminded telcos to adhere to the “10-second rule” mandated by regulators, under which USSD sessions under 10 seconds must not be billed.
The USSD billing conflict has persisted since 2019, culminating in a January 2024 threat by the NCC to disconnect nine banks over unpaid debts. These included UBA, FCMB, Fidelity, Zenith, Wema, Unity, Jaiz, Polaris, and Sterling banks.
In February 2024, Adebayo had hinted at progress in resolving the dispute: “Money has been paid, and we are making progress, thanks to the regulators.”
The Train 7 USSD billing shift remains a flashpoint in the ongoing tussle between telcos and banks over control, revenue, and regulation in Nigeria’s digital financial ecosystem.
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