New USSD Billing Model Takes Effect as Telcos Charge Customers from Airtime
Starting today, Nigerian bank customers will be charged directly by mobile network operators for using Unstructured Supplementary Service Data (USSD) services, following a directive from the Nigerian Communications Commission (NCC).
The move ends the previous practice where deposit money banks (DMBs) deducted USSD charges directly from customers’ bank accounts. Banks have since notified customers that future charges will be deducted from their mobile airtime.
Gbenga Adebayo, chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), confirmed the implementation of the new billing model in a statement on Wednesday.
He said, “USSD services play a vital role in expanding access to financial services, particularly for unbanked and underbanked populations.”
According to Adebayo, the NCC, in collaboration with the Central Bank of Nigeria (CBN), introduced the End-User Billing (EUB) model to address persistent issues in the previous system.
“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,” he said.
Under the new model, mobile network operators will charge N6.98 per 120 seconds, deducted directly from customers’ airtime. Users will receive a prompt to approve the charge before it is applied, and billing will 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.”
He advised customers to contact their telecom providers for access issues and their banks for transaction-related matters, urging users to explore other digital channels like mobile apps and ATMs.
