Nigerian commercial banks have settled 95% of the N180 billion debt owed to telecom operators for Unstructured Supplementary Service Data (USSD) services, according to Engr. Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON). Speaking during a virtual media session on Thursday, Adebayo revealed that only three banks remain outstanding, having negotiated installment plans with their final payments pending.
Shift to End-User Billing
The debt clearance paved the way for the transition to the End-User Billing (EUB) model, mandated by the Nigerian Communications Commission (NCC) and the Central Bank of Nigeria (CBN). Under EUB, USSD fees of N6.98 per 120-second session are now deducted directly from subscribers’ airtime, bypassing bank accounts. Adebayo noted that a major bank has successfully migrated to the system with positive trial results, while others are in progress. Banks opting to stay on the corporate billing model must clear all debts to avoid disruptions.
Adebayo emphasized transparency, assuring that customers won’t be charged for failed transactions due to network issues, but bank-side failures will incur fees. He warned against double billing, urging customers to report any bank deductions alongside airtime charges to their banks.
Customer Impact and Transparency
Lynda Saint-Nwafor, Chief Enterprise Business Officer at MTN Nigeria, clarified that the EUB model brings no significant changes for customers, who will continue paying N6.98 per session via airtime. Telecom operators, under NCC directives, will provide monthly performance statistics and standardized error messaging to ensure accountability. The migration, announced on June 18, aims to create a sustainable and customer-centric framework for USSD services in Nigeria’s digital financial ecosystem.
Resolving Long-Standing Disputes
The EUB model addresses years of disputes between banks and telecoms, with operators previously accusing banks of withholding over N200 billion in USSD fees by 2024. The NCC’s pricing determination, developed with CBN and stakeholders, resolves these tensions, fostering a transparent financial services landscape.
