Telecom companies MTN, Airtel, and others will now debit USSD charges directly from customers' airtime balances, following the banks' clearing of a ₦180 billion debt.
In a significant move aimed at enhancing transparency, accountability, and consistency in the telecommunications sector, Nigerian telecom operators have started migrating banks to a new billing system that allows customers to make USSD (Unstructured Supplementary Service Data) transactions directly from their airtime balance. This shift marks the end of banks acting as intermediaries for USSD transactions, a practice that often led to delayed or withheld payments to telecom operators.
The new **end-user billing (EUB) system** is designed to directly charge subscribers' airtime balances for USSD transactions. The cost, set at ₦6.98 per 120-second session, is deducted straight from the user's mobile airtime after they receive a prompt to opt in and approve the deduction. This system replaces the previous model where banks collected fees from customers but frequently failed to remit the funds to telecom operators.
The implementation of this new system follows the resolution of a significant financial dispute between telecom companies and commercial banks. Banks had accumulated an unpaid debt of approximately ₦180 billion by early 2025 for USSD services, which they used to provide mobile banking and financial services to customers, especially those without smartphones or internet access. Despite regulatory mandates from the Central Bank of Nigeria (CBN) and Nigerian Communications Commission (NCC) that telecom operators should receive ₦6.98 per USSD session, banks repeatedly failed to pay the agreed fees.
Three banks still in debt have opted for instalment payments which are nearing completion. The migration started with one bank; the rest of the banks will be migrated as soon as a Service Level Agreement (SLA) is signed. Customers will now receive a clear message informing them of the ₦6.98 fee and asking for their consent to proceed before each transaction.
The change in billing process brings greater visibility and consent into the billing process for subscribers, as users now see the ₦6.98 charge before any USSD transaction takes place. Airtime purchases and data top-ups via USSD remain free if customers use specific "direct strings" rather than the root menu, according to Linda Saint-Okafor, Chief Enterprise Business Officer, MTN Nigeria.
The new billing system enables the gradual rollout of end-user billing, where customers will now be charged from their airtime after each successful USSD session. This system restores direct control of USSD revenue to the telecom companies, ensuring transparency, accountability, and a sustainable revenue structure for the sector. The Association of Licensed Telecommunications Operators of Nigeria (ALTON) confirmed that the migration officially began in June 2025 after banks cleared their outstanding debts or committed to payment plans.
This reform is regarded as a long-overdue adjustment to improve financial flows in Nigeria’s telecom and mobile banking sectors while safeguarding consumer consent and experience. The change enhances the overall customer experience by minimising confusion and improving service delivery through consistency. Subscribers now have greater control over mobile financial interactions due to the transparency and visibility in the billing process. The new billing system leads to fewer failed charges, as a pre-transaction check ensures that the user's bank is ready to process the request before any deduction is made.
[1] Central Bank of Nigeria (CBN) Circular on USSD Charges (2020) [2] Nigerian Communications Commission (NCC) Press Release on USSD Billing System (2025) [3] Association of Licensed Telecommunications Operators of Nigeria (ALTON) Statement on USSD Migration (2025) [4] This Day Live: Telecom Operators Migrate to New USSD Billing System (2025)
The new end-user billing (EUB) system will now directly charge subscribers' airtime balances for USSD transactions, replacing the previous model where banks collected fees that often went unpaid. This shift in finance and business strategy is a significant step towards transparency, accountability, and a sustainable revenue structure for the telecommunications sector, as it restores direct control of USSD revenue to the telecom companies.
With the implementation of this technology-driven change, customers will have greater control over mobile financial interactions due to the transparency and visibility in the billing process, leading to improved service delivery and a better overall customer experience.
