Telecommunications operators in Nigeria, including MTN Nigeria, Airtel, Globacom, and 9Mobile, have threatened to withdraw network support for banks’ Unstructured Supplementary Service Data (USSD) services, citing what they describe as gross misinformation of subscribers regarding the new mode of transaction fee deductions.
On June 3, 2025, banks notified customers that, in line with a directive from the Nigerian Communications Commission (NCC), charges for USSD banking services would no longer be deducted from customers’ bank accounts. Instead, these charges would now be deducted directly from users’ mobile airtime, with each USSD session attracting a fee of ₦6.98 per 120 seconds, billed by the mobile network operator. Customers are to receive a consent prompt at the start of each session, and deductions will only occur upon confirmation and if the bank is available to provide the service. Customers who do not wish to continue using USSD banking under this new model are advised to discontinue use of the channel.
However, the telecom operators, under the Association of Licensed Telecom Operators of Nigeria (ALTON), have countered the banks’ notice, calling it a deliberate distortion of facts to suit the banks’ interests. ALTON Chairman, Engr. Gbenga Adebayo, clarified that the change was not a unilateral NCC directive but a joint regulatory agreement between the NCC and the Central Bank of Nigeria (CBN), witnessed by telcos and banks. The agreement stipulated that banks must clear all USSD debts owed to telcos by June 2, 2025, before migrating to the end-user billing model, with the migration process to be transparent and agreed upon by the telcos.
Adebayo emphasized that the migration must not result in customers being billed twice—having both their airtime and bank accounts charged for the same service. He noted that while some banks have settled their debts, the majority have not, making the implementation of the new billing model premature.
ALTON warned that if banks continue to misrepresent the agreement and delay debt settlement, telcos may withdraw support for USSD services to banks. The association stressed that USSD is not an indispensable service for banks and urged them to fulfill their obligations as agreed.
