Telcos to start charging bank customers for USSD services from today

Bank customers in Nigeria will now be charged directly by their mobile network operators for unstructured supplementary service data (USSD) services, starting today.

The development comes two weeks after the Nigerian Communications Commission (NCC) directed deposit money banks (DMBs) to stop deducting charges for USSD transactions directly from customers’ accounts.

Banks had notified customers via email that charges will now be deducted from their mobile airtime.

In a statement on Wednesday, Gbenga Adebayo, chairman, the Association of Licensed Telecommunications Operators of Nigeria (ALTON), confirmed the implementation of the USSD transaction deduction.

Adebayo described the move as a major step toward transparency and operational sustainability in the delivery of digital financial services.

According to Adebayo, the change is in line with the NCC’s determination of USSD pricing and services, developed in collaboration with the Central Bank of Nigeria (CBN) and other stakeholders.

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

The ALTON boss added that customers would receive a prompt to opt in and approve the charge before deduction, and billing would only occur for successful sessions.

Adebayo assured that the change would not affect USSD banking services’ availability or functionality, 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,” he said.

“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.

“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.”

The ALTON chairman 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,” he said.

Adebayo 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.