Nigerian telecommunications operators, including MTN, Airtel, Globacom, and 9mobile, have threatened to suspend Unstructured Supplementary Service Data (USSD) services for banks, citing concerns over misinformation regarding transaction fee deductions.
This development stems from recent communications by banks to customers, indicating that USSD charges would now be deducted directly from users’ mobile airtime, following directives from the Nigerian Communications Commission (NCC).
The Association of Licensed Telecom Operators of Nigeria (ALTON) has contested these claims, asserting that the information disseminated by banks misrepresents the nature of the agreement.
READ MORE: NCC Directs Banks to Deduct USSD Fees from Airtime
ALTON’s chairman, Engr. Gbenga Adebayo clarified that the billing model was the result of a joint regulatory agreement between the NCC and the Central Bank of Nigeria (CBN), with input from both telcos and banks, rather than a unilateral directive from the NCC. He emphasised that banks’ portrayal of the situation is misleading and serves their interests.
Under the new billing structure, each USSD session is set to attract a charge of ₦6.98 per 120 seconds, billed by the mobile network operator. Customers will receive a consent prompt at the start of each session, and airtime will only be deducted upon their confirmation and the availability of the bank to fulfil the service.
This dispute is further complicated by longstanding debts owed by banks to telecom operators for USSD services. As of early 2025, the outstanding debt was estimated at over ₦200 billion, with some banks failing to meet payment deadlines set by regulatory authorities. The NCC had previously authorised telcos to disconnect USSD services for defaulting banks, highlighting the severity of the issue.
