The Nigerian Communications Commission (NCC) has refuted claims by some Nigerian banks that Unstructured Supplementary Service Data (USSD) charges would be deducted from customers’ airtime under an end-user billing model starting June 3, 2025. According to NCC insiders, banks and telecom operators are still finalizing technical integrations and testing, with no confirmed start date for the new billing system.
Banks’ Premature Announcements
Earlier this month, banks such as UBA and FCMB informed customers that, per NCC directives, USSD transaction fees would shift from bank account deductions to airtime balances starting June 3. The banks framed the change as a regulatory mandate, stating that it aligned with the NCC’s end-user billing framework. However, NCC sources clarified that the process remains in the testing phase, and banks have yet to communicate an official rollout date to customers.
Telcos Push Back
Telecom operators, represented by the Association of Licensed Telecom Operators of Nigeria (ALTON), have criticized the banks’ announcements as misleading. ALTON Chairman, Engr. Gbenga Adebayo, emphasized that the shift to end-user billing was not an NCC directive but a joint agreement between the NCC, the Central Bank of Nigeria (CBN), banks, and telcos. The agreement stipulated that banks must clear outstanding USSD debts by June 2, 2025, before transitioning to the new billing model, ensuring transparency and preventing double billing.
Adebayo noted that while some banks have settled their debts, many have not, delaying the implementation. “The migration process must ensure customers aren’t charged twice—once from their airtime and again from their bank accounts,” he said. “Until all debts are cleared and modalities finalized, the end-user billing system cannot proceed.”
The USSD Debt Dispute
The disagreement stems from a long-standing conflict over N250 billion in USSD debts owed by banks to telecom operators. Banks have historically deducted USSD fees from customer accounts but often failed to remit these to telcos. In December 2024, the CBN and NCC intervened, directing banks and mobile network operators to resolve the issue. In January 2025, the NCC threatened to suspend USSD services for nine banks with unpaid debts and ordered their disconnection by January 27. By February 28, MTN Nigeria reported receiving N32 billion of the N72 billion owed by banks, indicating partial progress.
What’s Next?
The ongoing dispute and incomplete technical preparations have stalled the transition to end-user billing. The NCC and telcos are focused on ensuring a seamless process that protects customers from overbilling. Until banks clear their debts and finalize integration, Nigerians will continue to see USSD charges deducted from their bank accounts rather than airtime.
