By Charles Pemu 
A significant escalation is underway between Nigerian telecom operators and commercial banks over the billing for Unstructured Supplementary Services Data (USSD) transactions. Major network providers, including MTN Nigeria, Airtel, Globacom, and 9Mobile, are threatening to cease network support for banks’ USSD services, alleging that banks have deliberately misrepresented the agreed-upon method for deducting transaction fees to subscribers.
The dispute ignited following recent communications from banks to their customers. These notices, referencing a directive from the Nigerian Communications Commission (NCC), informed customers that effective June 3, 2025, charges for USSD banking services would transition from direct bank account deductions to direct deductions from users’ mobile airtime.
A typical bank notice stated: “In line with the directive of the Nigerian Communications Commission (NCC), please be informed that effective June 3, 2025, charges for USSD banking services will no longer be deducted from your bank account. Going forward, these charges will be deducted directly from your mobile airtime balance in accordance with the NCC’s End-User Billing (EUB) model. Under this new billing structure, each USSD session will attract a charge of ₦6.98 per 120 seconds, which will be billed by your mobile network operator.” The notice also mentioned a consent prompt and the option to discontinue USSD banking.
However, the Association of Licensed Telecom Operators of Nigeria (ALTON) swiftly countered this narrative, branding the banks’ communication as “gross misinformation deliberately hatched to suit their selfish interests.” ALTON Chairman, Engr. Gbenga Adebayo, clarified that the understanding was not a unilateral NCC directive but a “joint regulatory agreement” involving the NCC and the Central Bank of Nigeria (CBN), witnessed by both telcos and banks.
According to Adebayo, a key prerequisite for migrating to the end-user billing model by June 2, 2025, was the banks’ full clearance of outstanding USSD debts owed to telecom operators. Furthermore, any migration model had to be transparent and mutually agreed upon by the telcos to prevent customers from being billed twice for the same service, once from their airtime and again from their bank accounts.
“As we speak, some of the banks have cleared their debts, but the majority are yet to do so,” Adebayo stated. He warned, “Our position now is that if that is the way the banks want to treat the agreement, we may withdraw support for their USSD services. It is not a must-have. They can do without it. But, they should clear the debts as agreed.”
This standoff threatens to significantly disrupt mobile banking services for millions of Nigerians, setting the stage for a critical confrontation between the financial and telecommunications sectors.