In a significant development for Nigeria’s digital banking and telecommunications sectors, thirteen commercial banks have fully settled their outstanding USSD debts owed to Mobile Network Operators (MNOs), paving the way for the implementation of a new airtime-based billing system for USSD banking transactions.
Engr. Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), announced during the recent ‘ASK the Exec’ virtual session hosted by MTN Nigeria that the remaining three banks are close to completing their payments, having already cleared over 95 percent of their debts. This milestone resolves a long-standing issue that had delayed the rollout of a more transparent and customer-friendly billing model.
Under the new system, USSD transaction charges will be deducted directly from customers’ airtime balances rather than their bank accounts. This change is designed to give customers greater control and clarity over their transaction fees. Lynda Saint-Nwafor, MTN’s Chief Enterprise Business Officer, explained that customers will receive a clear consent message informing them of the N6.98 deduction from their airtime before proceeding with any USSD banking transaction.
The process involves the MNO sending a consent message to the customer, who must accept the charge before the MNO contacts a USSD aggregator to confirm the bank’s availability. Only after confirmation will the customer be connected, and the airtime balance billed. This ensures customers are only charged for successful transactions.
Importantly, direct airtime and data purchases using USSD codes—such as 737amount#—will remain zero-rated, meaning no USSD fees will apply. This encourages customers to use direct strings for airtime top-ups without incurring additional charges.
The new billing approach also introduces standardized messaging to ensure consistent communication across all operators and banks, enhancing transparency and accountability. Monthly performance reports will be submitted to regulators to monitor compliance and service quality.
Adebayo reassured customers that the shift to airtime billing does not increase the overall cost of USSD transactions; the fee remains N6.98, only the payment method has changed. He also addressed concerns about access for unbanked individuals or those without airtime, noting that customers can purchase airtime from their bank accounts at no extra cost using direct USSD strings.
If a transaction fails due to network issues on the MNO side, customers will not be charged or will receive a reversal. However, if the failure is due to the bank’s system, charges will apply, with clear communication provided to the customer.
This collaborative effort between Nigeria’s telecommunications and banking industries, supported by regulators, marks a significant step toward a more efficient, transparent, and customer-centric USSD banking experience for millions of Nigerians.
