Telecommunications operators in Nigeria now have direct access to revenue generated from Unstructured Supplementary Service Data (USSD) services, following a new billing arrangement approved by the Nigerian Communications Commission (NCC) and the Central Bank of Nigeria (CBN). The new model, known as the End-User Billing framework, allows MTN, Airtel, 9mobile, and Glo to deduct USSD service charges directly from subscribers’ airtime balances, eliminating the role of banks as intermediaries in the payment process.
The dispute over USSD billing dates back to 2019, when telecom operators accused banks of defaulting on agreed payments for services rendered. This prompted the CBN and NCC to step in with an interim solution in 2021, introducing a flat-rate charge of N6.98 per USSD session, to be collected by banks on behalf of telcos. However, compliance remained inconsistent, with operators warning of service disruption and threatening to disconnect indebted banks.
Under the revised model, subscribers will pay N6.98 per session lasting up to 120 seconds only after receiving a prompt to opt-in and approve the deduction. The Association of Licensed Telecom Operators of Nigeria (ALTON) Chair, Gbenga Adebayo, said the transition marks a significant milestone in the evolution of Nigeria’s digital financial ecosystem. He assured subscribers that there would be no disruption to USSD services and that existing codes used for transactions like balance enquiries, fund transfers, and bill payments would remain active.
The President of the National Association of Telecoms Subscribers, Adeolu Ogunbanjo, described the End-User Billing model as a long-overdue reform that brings transparency and accountability to the sector. He commended the NCC and CBN for leading the reform and expressed hope that the new model would encourage operators to improve service delivery.
Banks still owe telecom operators, but a payment plan has been agreed to settle the outstanding debts. The plan is divided into three phases: banks must pay 60% of old bills by January 2, 2025; settle all outstanding pre-existing bills by July 2, 2025; and pay 85% of new bills by December 31, 2025.
USSD remains a critical tool for digital financial inclusion in Nigeria, particularly for users in rural and underserved areas who lack access to smartphones or internet-enabled devices. With the billing model now fully aligned with subscriber consent and direct payments, stakeholders expect greater trust and efficiency across the digital finance value chain.
