Telecommunications subscribers have welcomed the End-User Billing (EUB) model for unstructured supplementary service data (USSD) services in the country.
Telecom operators under the aegis of the Association of Licensed Telecom Operators of Nigeria (ALTON) announced, yesterday, that the new billing system took effect yesterday.
The subscribers acting under the National Association of Telecoms Subscribers of Nigeria (NATCOMs) told The Guardian they welcomed the new system, but “we are demanding transparency and accountability from both the banks and the telcos”.
The President, Deolu Ogunbanjo appreciated the Nigerian Communications Commission (NCC), Central Bank of Nigeria (CBN), Deposit Money Banks (DMBs) and the telco for reaching an agreement on the airtime billing system.
He urged parties involved to stick to the terms of the agreement, stressing that the new system will prevent accumulated debt, which he said has been the hallmark of the previous system.
Ogunbanjo decried the challenges that followed the previous system, where about N160 billion in debt was contested by the parties.
The NATCOMs boss also urged the telcos to ensure that proceeds in the new system are channelled, largely towards improving the quality of telephony services in the country.
ALTON, in a statement yesterday, signed by the Chairman and Publicity Secretary, Gbenga Adebayo, and Damian Udeh, said the End User Billing system has commenced.
There was a brouhaha a few weeks back when the DMBs suddenly informed subscribers that USSD charges would now be from their airtime directly. The telcos had kicked against that on the ground that the migration would only commence with banks that met the stipulated agreement between both parties, especially on the modalities.
As it is, with the telcos announcing the commencement of migration, it means there has been an agreement from both parties.
ALTON noted that this transition marks a significant milestone in the evolution of Nigeria’s digital financial ecosystem and is being implemented per the Determination of USSD Pricing and Services issued by the Nigerian Communications Commission (NCC).
The telecom body informed that the Determination was developed in collaboration with the Central Bank of Nigeria (CBN) and other key stakeholders to ensure a sustainable, transparent and customer-friendly framework for USSD service.
It explained that USSD services played a vital role in expanding access to financial services, particularly for unbanked and under-banked populations.
To address these challenges, ALTON said the NCC’s 2025 Determination introduced the End-User Billing model, which allows mobile network operators to charge customers directly for USSD sessions.
According to the telcos, 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.
ALTON noted that one of which is the notification to customers of the billing change in advance and to ensure that customers are fully aware of the new airtime-based charges and how they will be applied. Accordingly, under the new billing model, USSD charges will be deducted directly from the customer’s airtime balance, not from their bank account, and each USSD session will attract a charge of N6.98 per 120 seconds.
To enjoy the service, ALTON said customers will receive a prompt to opt in and approve the charge before any deduction is made, and there will be no double billing as billing will only occur for successful sessions via airtime deductions.
In response to the new regime, Guaranty Trust Bank joined other banks in adopting the new billing model for its USSD banking transactions yesterday.
According to a message sent to customers, the N6.98 transaction fee will now be deducted from airtime balances, rather than bank accounts, starting today, June 18, 2025.
“Dear Customer, please be informed that effective June 18, 2025, the N6.98 USSD fee will be deducted from your airtime balance, no longer from your bank account. Thank you,” the message read.
