Starting Wednesday, June 18, 2025, mobile subscribers across Nigeria will begin paying for USSD services directly from their airtime, marking a major policy shift in how telecom-based financial services are billed. The Association of Licensed Telecom Operators of Nigeria (ALTON) confirmed the transition to the End-User Billing (EUB) model in an official announcement that overrides an earlier notice by some banks which had claimed that deductions would begin from June 3.
The change follows a directive by the Nigerian Communications Commission (NCC) in collaboration with the Central Bank of Nigeria (CBN), aimed at resolving long-standing disputes between telecom operators and deposit money banks over who shoulders the cost of USSD services.
What’s Changing?
With the new end-user billing model, users will now pay ₦6.98 per 120 seconds for each USSD session, with charges deducted directly from their airtime. A prompt will be issued to obtain the customer’s consent before any deductions are made. Only successful sessions will be charged, a feature ALTON says will help eliminate issues of double billing and failed transaction charges.
Previously, telcos billed banks for USSD usage under a corporate billing model. However, this setup led to significant disputes over unpaid fees, service interruptions, and ultimately, a ₦250 billion debt owed to telecom operators by banks.
ALTON Sets the Record Straight
The announcement by ALTON comes in response to confusion stirred by some banks earlier in June, who notified customers that direct billing would commence on June 3. ALTON clarified that no such transition had occurred at that time, and that the official and coordinated implementation date is June 18.
“This coordinated migration ensures transparency and consistency across the industry,” said ALTON Chairman, Engr. Gbenga Adebayo. “With end-user billing, mobile network operators can now deliver USSD services more efficiently and sustainably, while customers get a clearer view of what they’re paying for.”
Customer Awareness and Support
To ease the transition, banks are required to notify their customers in advance and educate them about the new charges. ALTON has also issued guidelines to help customers know where to report issues: mobile network operators will handle access or airtime billing issues, while banks will be responsible for resolving transaction-related errors.
Importantly, ALTON reassured users that alternative banking channels—such as mobile apps, ATMs, and internet banking—remain fully operational and unaffected by this change.
The Bigger Picture: Financial Inclusion
USSD remains a vital tool for promoting financial inclusion, especially among Nigeria’s unbanked and underbanked populations who lack access to smartphones or reliable internet. ALTON emphasized that the end-user billing model will ensure uninterrupted access to USSD services while creating a more sustainable ecosystem for all players involved.
By holding users, banks, and telcos accountable within a transparent billing framework, this transition represents a critical step toward improving trust, service delivery, and innovation in Nigeria’s digital financial services landscape.
With this development, Nigeria moves closer to resolving one of its most persistent telecom-fintech challenges—ushering in a more stable and equitable payment system for millions of mobile users.
