Telecom subscribers to pay for USSD from airtime soon —ALTON

Telecom subscribers may soon begin paying for Unstructured Supplementary Service Data (USSD) services directly from their airtime balance.

Talks between banks and telecom operators have reached advanced stages, media source disclosed on Tuesday April 14, 2025.

The proposed system is known as end-user billing.

This method will deduct USSD fees directly from the user’s airtime, not their bank accounts.

This move marks a shift from the current corporate billing method.

Banks presently pay telecoms for USSD on behalf of users.

The new plan will transfer the cost burden directly to subscribers.

Chairman of Association of Licensed Telecom Operators of Nigeria (ALTON),, Mr. Gbenga Adebayo, confirmed that discussions are ongoing.

He said all parties are finalising the billing structure to favour users and stakeholders.

According to him, the move will address past debt issues between banks and telecoms.

He noted that banks have long pushed for end-user billing.

Adebayo stressed that the system change would not disrupt existing USSD services.

“Today, banks debit your account after each USSD transaction,” he said.

“Under the new plan, charges will come from your airtime instead.”

He explained that the banks will stop collecting USSD fees directly from users’ accounts.

Instead, telecoms will deduct fees at the point of USSD use.

He added that both sectors are working on a smooth migration plan.

Recall that in 2019, bank CEOs proposed a similar billing model.

They also opposed sharing USSD revenue with telecom operators.

Telcos had proposed a fee of N4.50 per 20 seconds.

Banks argued that this would inflate charges by 450 percent.

Telcos rejected end-user billing at that time.

They cited technology challenges and opted for corporate billing.

In 2020, the issue remained unresolved.

By 2021, subscribers began paying N6.98 per USSD transaction.

The unresolved billing dispute led to N160 billion in debts.

As of November 2024, most debts had been recovered.

The Nigerian Communications Commission (NCC) ordered telcos to deactivate banks that failed to pay.

Eighteen banks were listed as defaulters.

Adebayo confirmed some banks had paid off their debts.

He warned that non-compliant banks risked sanctions.

A Central Bank of Nigeria (CBN) circular, set a repayment deadline of January 2, 2025.

Banks can pay in full or in monthly instalments.

All instalments must be completed by July 2, 2025.

Banks must also pay 60 percent of pre-API debts.

They must settle 85 percent of post-API debts by December 31, 2024.

Future debts must be cleared within 30 days of invoicing.

Only compliant banks and telcos will switch to the new model.

Regulators will later begin public awareness campaigns.

Until then, the 10-second rule will apply, and USSD sessions under 10 seconds will not be billed.

Banks with prepaid billing can also join the end-user billing model, but they must first meet regulatory conditions.

The new plan may reduce friction between banks and telcos.

It may also improve transparency in mobile financial services.

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