Effective June 18, 2025, mobile subscribers in Nigeria will begin paying for Unstructured Supplementary Service Data (USSD) banking services directly from their airtime following a regulatory-backed transition implemented by telecom operators under the Association of Licensed Telecom Operators of Nigeria (ALTON).
This development follows a circular issued by ALTON confirming the commencement of the new billing structure, in line with the Nigerian Communications Commission’s (NCC) Determination of USSD Pricing and Services.
The move was also endorsed by the Central Bank of Nigeria (CBN) and other stakeholders to ensure a sustainable and transparent framework for USSD service delivery.
Under the revised billing model, users will be charged ₦6.98 per 120 seconds of USSD session, with charges deducted directly from their mobile airtime balance rather than their bank accounts.
The new approach replaces the previous system where banks absorbed the costs, leading to years of debt accumulation between financial institutions and telecom operators.
By the end of 2024, unresolved debts from USSD service provision had ballooned to ₦250 billion. Following interventions by the CBN and NCC, the dispute was resolved in early 2025, clearing the path for the direct airtime billing model now being implemented.
To prevent a recurrence of unpaid debts, telcos will now receive payments in real-time through the direct airtime deduction method, ensuring prompt and efficient remittance.
According to ALTON, the updated system is designed to be customer-friendly. Users will receive a prompt to opt-in and approve any charge before airtime deductions are processed. The association also confirmed that double billing has been eliminated, and charges will only apply to completed sessions.
“The transition ensures clarity in service delivery and aligns with global best practices,” ALTON stated, adding that the move will have no impact on service availability or functionality. Customers will continue to access USSD services using their respective bank codes, provided they have sufficient airtime on their lines.
Subscribers are advised to contact their mobile network providers for any USSD access issues, and to liaise with their banks for transaction-related concerns such as failed transfers or service errors.
Industry analysts view the billing shift as a positive step for operational sustainability, given the increasing reliance on USSD channels for financial inclusion, particularly among users without internet-enabled devices.
The implementation also marks a key milestone in resolving the long-standing rift between Nigeria’s banking and telecom sectors and reflects improved regulatory coordination to streamline digital service delivery.
