By Prince Osuagwu, Hi-Tech Editor

TELECOMMUNICATIONS subscribers in the country will now have to spend approximately N7 worth of airtime each time they carry out money transfers on their mobile phones.

Read Also: USSD Charges: Telcos threaten to withdraw services over banks’ misinformation

This is contained in the announcement of a new End User Billing EUB model on the Unstructured Supplementary Service Data, USSD transactions by telecom operators, Wednesday.

However, the new model spares the subscribers the complaints of alleged arbitrary deductions from their bank accounts and hands them over the power of determining how much to spend.

Meanwhile, they have challenged the operators to ensure the money recouped from these charges would be used on network optimization to avoid glitches which can frustrate smooth USSD transactions.

President of National Association of Telecom subscribers in Nigeria, NATCOMs, Chief Deolu Ogunbajo, told Vanguard that the new model is a welcome development to the subscribers but warned the telcos to make good use of the gains of direct deduction or face the wrath of the subscribers should their networks freeze during USSD transactions.

Wednesday, the telcos made a clarification that the End-User Billing, EUB, means that instead of the banks charging subscribers and later remit percentage to the telcos who provide the USSD backbone, the telcos will now deduct the money directly from subscribers.

… since 2019

This agreement was reached after the Central Bank of Nigeria, CBN, and the Nigerian Communications Commission, NCC, waded into a protracted fight between the telcos and banks over a staggering N250 billion USSD debt which threatened the stability of both sectors since 2019.

A few weeks back the banks suddenly informed subscribers that USSD charges will be from their airtime directly. However, the telcos kicked against it on the ground that the migration would only commence when the banks have cleared their USSD debts and as well meet stipulated agreement between both parties on the modalities.

Apparently, the banks having met the agreement terms, the telcos Wednesday came up with a proper announcement to their subscribers, making clarifications on the new payment model to avoid ambiguity.

Making the announcement under their umbrella body, the Association of Licensed Telecom Operators of Nigeria, ALTON, the telcos 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).

In a statement signed by the Association’s Chairman and Publicity Secretary, Engr Gbenga Adebayo and Damian Udeh, respectively, the telecom body revealed 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 delivery, adding that the USSD services play a vital role in expanding access to financial services, particularly for unbanked and underbanked populations.

ALTON’s statement

Part of the statement reads: “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.

“To address these challenges, the NCC’s 2025 Determination introduced the End-User Billing model, which allows mobile network operators to charge customers directly for USSD sessions. 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.

“One of such conditions 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 ₦6.98 per 120 seconds.”

Billing method

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. ALTON wishes to reiterate that this change does not affect the availability or functionality of USSD banking services, as customers can continue to use their bank’s USSD codes as usual, provided they have sufficient airtime. To ensure a smooth transition, ALTON advises customers to follow these support guidelines, including, “For access issues (e.g., inability to dial USSD codes), contact your mobile network operator; for transaction-related issues (e.g., failed transfers or service errors), contact your bank’s customer service; both banks and mobile network operators are required to provide responsive support and ensure that customers can access and use USSD services without disruption.

According to the telcos, alternative digital banking channels such as mobile apps, Internet banking, and ATMs remain fully operational and available for customer convenience.

ALTON reiterates its commitment to working closely with the NCC, CBN, financial institutions, and other stakeholders to ensure that this transition is seamless, equitable, and beneficial to all parties, especially the end users.

“We remain dedicated to promoting transparency, operational efficiency, and consumer protection across Nigeria’s telecommunications and digital finance sectors,” it stated.

Vanguard News