9am News report that commercial banks in Nigeria have now settled 95% of the N180 billion debt owed to telecom operators for Unstructured Supplementary Service Data (USSD) services, paving the way for a major industry shift to end-user billing.
This development was confirmed by Engr. Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), during a virtual media briefing on Thursday.
Adebayo noted that as of January 2025, the debt stood at approximately ₦180 billion. Following consistent pressure and negotiations, only three banks remain with outstanding balances, all of which are under instalment payment arrangements.
He explained that payment of the USSD debt was a key prerequisite for migrating to the end-user billing model. “With most banks having cleared their obligations, the transition is now in progress,” Adebayo stated.
What is End-User Billing?
Under the end-user billing system, charges for USSD transactions will be deducted directly from customers’ airtime, rather than from their bank accounts.
Adebayo said at least one major Nigerian bank has already been successfully migrated with “positive trial results,” while others are currently undergoing the same process. Importantly, migration is not mandatory banks that have cleared their debts can choose to remain on corporate billing.
“If a bank chooses to stay with corporate billing, it must continue to settle charges directly with the telecoms and not pass on the cost to customers unless through approved methods,” he said.
To address concerns about possible double billing, Adebayo clarified that if a transaction fails on the telecom network, the customer will not be charged. However, if the failure occurs on the bank’s side, charges may still apply, as the session would be deemed successful by the operator.
He added, “If customers notice deductions from both their airtime and bank accounts, they should contact their banks, as telecoms are only allowed to bill through airtime under the new system.”
Speaking on behalf of telecoms, Lynda Saint-Nwafor, Chief Enterprise Business Officer of MTN Nigeria, said the change will not impact the pricing of USSD services.
“Customers will still pay ₦6.98 per session, same as before,” she said. “The only difference is that it will now be deducted from airtime.”
Saint-Nwafor assured that telcos are working closely with the Nigerian Communications Commission (NCC) to ensure transparency, including monthly performance reports and standardized error messages.
The NCC, in collaboration with the Central Bank of Nigeria (CBN) and other stakeholders, issued a directive on June 18, 2025, mandating the move to end-user billing to improve the transparency, sustainability, and efficiency of USSD services, especially for digital banking.
According to ALTON, the goal is to establish a more user-friendly and accountable billing structure for Nigeria’s expanding digital financial services sector.
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