Banks vs. Telcos: Who’s Telling the Truth About Your USSD Charges?

Telecommunications companies in Nigeria, including MTN, Airtel, Globacom, and 9Mobile, have threatened to withdraw Unstructured Supplementary Service Data (USSD) services provided to banks.

This move comes in response to what they describe as misinformation disseminated by banks regarding the new billing structure for USSD transactions.

Background

USSD services are widely used in Nigeria for mobile banking transactions, such as fund transfers and balance inquiries. Traditionally, the charges for these services were deducted from customers’ bank accounts. 

However, a recent directive from the Nigerian Communications Commission (NCC) mandates that, effective June 3, 2025, USSD charges should be deducted directly from customers’ mobile airtime balances. 

Under this new billing structure, each USSD session will attract a charge of ₦6.98 per 120 seconds, billed by the customer’s mobile network operator. 

Telcos’ Grievances

The telecom operators, under the umbrella of the Association of Licensed Telecom Operators of Nigeria (ALTON), argue that the banks’ communication to customers misrepresents the nature of the billing change. 

They assert that the shift to airtime-based billing was not solely a directive from the NCC but rather part of a joint agreement involving the NCC, the Central Bank of Nigeria (CBN), telecom operators, and banks. This agreement stipulated that banks must clear all outstanding USSD debts owed to telecom operators before implementing the new billing model. 

ALTON’s Chairman, Engr. Gbenga Adebayo emphasised that many banks have yet to settle their debts, making the unilateral implementation of the new billing system premature. He warned that if banks proceed without fulfilling their obligations and without a transparent migration process that prevents double billing, telecom operators may withdraw USSD services provided to those banks. 

Implications

The potential withdrawal of USSD services could affect millions of Nigerians who rely on these services for daily banking transactions, especially in areas with limited internet access.