Following a regulatory directive from the Nigerian Communications Commission (NCC), mobile network operators (MNOs) announced that effective from today mobile telecommunication subscribers in the country would begin to pay directly for USSD services through their airtime.
The development marked the migration to the End-User Billing (EUB) model, in line with a new directive from the telecom industry regulatory commission.
According to the Association of Licensed Telecoms Operators of Nigeria (ALTON), the umbrella body representing telecommunications providers in Nigeria, the migration to end-user billing follows the determination of USSD Pricing and Services issued by the NCC, which was developed in collaboration with the Central Bank of Nigeria (CBN) and other key stakeholders.
The association stated that the migration would create a more sustainable, transparent, and customer-friendly framework for delivering USSD services, especially in the nation’s fast-growing digital financial landscape.
Specifically, under the new arrangement, USSD session charges will now be deducted directly from users’ airtime at a rate of N6.98 per 120 seconds, and subscribers will receive a prompt to opt in before the charge is applied, and only successful sessions will be billed.
Before now, the MNOs had been billing the banks for USSD services in a corporate billing model that led to frequent disputes over unpaid charges with the attendant implications for service disruptions to millions of users who rely on USSD codes for financial transactions.
Commenting on the migration, ALTON Chairman, Engr. Gbenga Adebayo, stated: “With this transition, mobile network operators will now charge customers directly, ensuring a more accountable and efficient system.”
The association further clarified that to qualify for migration to the new model, banks must meet specific regulatory and operational conditions, including notifying customers about the change in billing well in advance while the customers must also be educated on how the charges will be applied.
To forestall hitches under the latest arrangement, the ALTON has also issued support guidelines to ensure a seamless transition, stating that for issues accessing USSD codes, customers should contact their mobile network provider; for transaction errors, customers are advised to reach out to their banks; and both telcos and banks are mandated to provide responsive customer support.
While expressing optimism that the migration will positively impact how users interact with mobile financial services, the association assured that alternative digital banking channels, including mobile apps, internet banking, and ATMs, remained fully operational.
It clarified: “USSD remains critical in deepening financial inclusion across Nigeria, especially for underserved and low-income populations. ALTON is committed to working with regulators and financial institutions to ensure this transition benefits all users.”
