Telcos Set New Date To Begin Charging Airtime For USSD

Beginning June 18, mobile subscribers in Nigeria will be directly charged N6.98 per 120 seconds from their airtime for USSD use, as telcos adopt a new billing model.

Starting from Wednesday, June 18, 2025, mobile phone users in Nigeria will begin paying for USSD services directly from their airtime.

This change is part of a new system called the End-User Billing (EUB) model, which was introduced by the Nigerian Communications Commission (NCC).

This new rule replaces an earlier notice from some banks that said charges would start on June 3. The announcement about this update came from the Association of Licensed Telecom Operators of Nigeria (ALTON).

ALTON explained that this new billing method is based on the NCC’s decision on USSD pricing and services. The policy was developed together with the Central Bank of Nigeria (CBN) and other important partners.

The purpose of this change is to make USSD charges clearer and more reliable. “This migration aims to create a more sustainable, transparent, and customer-friendly framework for delivering USSD services,” ALTON said. They added that this is especially important as more people in Nigeria use digital financial services.

With the new system, each USSD session will cost N6.98 for every 120 seconds. Users will first get a message asking them to accept the charge before it is applied. They will only be charged for successful sessions. ALTON said this will stop issues like double billing and help customers have a better experience.

Before now, telecom companies charged the banks for USSD usage through a corporate billing system. However, this often led to fights over unpaid fees. These disagreements sometimes caused service interruptions, which affected millions of Nigerians who use USSD codes for bank transfers and other services.

“With this transition, mobile network operators will now charge customers directly, ensuring a more accountable and efficient system,” said ALTON Chairman, Engr. Gbenga Adebayo.

To be part of the new billing system, banks must first meet certain rules. One of them is making sure customers are properly informed ahead of time. ALTON also said banks must explain to users how the new charges will work.

To support the switch, ALTON has shared simple guidelines:

• If a customer has trouble using USSD codes, they should contact their mobile network.
• If there’s a mistake with a bank transaction, the customer should reach out to their bank.
• Both banks and mobile networks must offer helpful customer service during this change.

Even though this update will change how people use USSD, ALTON assured users that other options like mobile apps, internet banking, and ATMs will still work.

“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,” the statement added.

For years, banks and telecom companies in Nigeria have argued over who should pay for USSD services. In many cases, banks collected money from customers but did not pay the telcos. This created a large debt of around N250 billion.

In December 2024, the Central Bank of Nigeria and the NCC told banks and mobile networks to sort out the problem. After telcos threatened to stop USSD services, the NCC warned that it would suspend USSD and name the banks that were still owing.

On January 15, the NCC ordered mobile networks to disconnect USSD services to nine banks by January 27 over the unpaid debts. Later, on February 28, one of the telecom companies, MTN Nigeria, confirmed it had received N32 billion out of N72 billion it was owed by the banks as part of the debt settlement.

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