Telcos to Deduct USSD Charges Directly from Airtime as NCC, CBN Approve New Billing Model
Telecommunication operators in Nigeria will now deduct Unstructured Supplementary Service Data (USSD) charges directly from subscribers’ airtime, following a new billing model approved by the Nigerian Communications Commission (NCC) and the Central Bank of Nigeria (CBN).
The End-User Billing (EUB) framework eliminates banks as intermediaries and allows operators like MTN, Airtel, Glo, and 9mobile to directly collect service fees. Under this system, subscribers will be charged ₦6.98 per session (up to 120 seconds), only after opting in and approving the deduction.
This move follows years of disputes, with telecom operators accusing banks of withholding over ₦200 billion worth of USSD service payments as of 2024. The President of the National Association of Telecoms Subscribers (NATCOMS), Adeolu Ogunbanjo, hailed the new model as a “long-overdue reform” that enhances transparency and accountability.
The transition, officially announced by the Association of Licensed Telecom Operators of Nigeria (ALTON), has already seen commercial banks like GTBank, UBA, and FCMB notifying customers about the airtime billing switch.
ALTON Chairman Gbenga Adebayo described the change as a major milestone in Nigeria’s digital finance ecosystem, adding that USSD codes for banking transactions will remain unchanged and services uninterrupted.
USSD is critical to financial inclusion in Nigeria, especially for people in rural areas without smartphones or internet access. The direct billing model is expected to strengthen user trust, improve service delivery, and enhance digital banking efficiency.
To address existing debts, banks and telcos have agreed to a phased repayment plan: 60% of old debts by January 2, 2025; full settlement by July 2, 2025; and 85% of new bills paid by December 31, 2025. The NCC and CBN have stated that only compliant institutions will be allowed to activate the new billing system.
Ogunbanjo also expressed optimism that telcos would reinvest in infrastructure to reduce poor service quality now that billing issues are resolved.
