BREAKING: Airtime Now Required for USSD Transactions from June 18 – Telcos

The Nigerian telecom has announced that beginning Wednesday, June 18, 2025,  subscribers will be charged directly by their mobile network operators for using Unstructured Supplementary Service Data (USSD) services.

This development was made known in a joint statement issued by Mr. Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), and Mr. Damian Udeh, the association’s Publicity Secretary.

According to Adebayo, the change aligns with the Nigerian Communications Commission (NCC)’s newly determined USSD pricing framework, developed in collaboration with the Central Bank of Nigeria (CBN) and other industry stakeholders.

“USSD services play a vital role in expanding access to financial services, particularly for unbanked and underbanked populations,” Adebayo stated.

He noted that under the new End-User Billing (EUB) model, mobile network operators will deduct N6.98 per 120 seconds directly from a user’s airtime balance. Subscribers will receive a prompt to opt-in and approve the deduction before being charged. Importantly, charges will only apply to successful USSD sessions.

“However, the previous corporate billing model where banks were billed by telecom operators led to prolonged disputes over unpaid charges, service interruptions and uncertainty for customers,” he explained.

To address these issues, the NCC’s 2025 determination introduced the EUB model, which allows telecom operators to bill subscribers directly. Adebayo added that only banks meeting specific regulatory and operational conditions are permitted to transition to this new system.

“To achieve the implementation of the EUB model, the CBN and NCC have stipulated that only banks that meet certain regulatory and operational conditions are permitted to migrate,” he said.

Adebayo assured subscribers that the transition would not disrupt USSD banking services. As long as customers have sufficient airtime, they can continue to access their bank codes.

He also urged subscribers to reach out to their mobile network operator for access issues and their bank for transaction-related matters.

“To ensure a smooth transition, we urge subscribers to follow support guidelines. Alternative digital banking channels such as mobile apps, internet banking, and ATMs remain fully operational,” he advised.

Adebayo reaffirmed ALTON’s commitment to partnering with the NCC, CBN, financial institutions, and other stakeholders to ensure a seamless and beneficial transition, especially for end-users.

According to a report by the News Agency of Nigeria (NAN), the shift in USSD billing stems from prolonged disputes between Nigerian banks and telcos over a N250 billion USSD debt.

In December 2024, the CBN and NCC directed mobile network operators (MNOs) and Deposit Money Banks (DMBs) to resolve the impasse. Telcos had threatened to suspend USSD services due to non-payment by banks, prompting the NCC to warn that it would disconnect codes and name defaulting banks.

On January 15, the NCC instructed telcos to disconnect USSD codes assigned to nine banks by January 27 due to unpaid debts. By February 28, MTN Nigeria confirmed receiving N32 billion out of N72 billion owed by banks as partial payment.

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