By 
Nigeria’s telecommunications sector has taken a major step toward resolving the long-standing dispute over Unstructured Supplementary Service Data (USSD) charges, with the adoption of a new billing framework that allows telecom operators to directly deduct service fees from subscribers’ airtime.
The revised model, known as the End-User Billing (EUB) Framework, has been approved by both the Nigerian Communications Commission (NCC) and the Central Bank of Nigeria (CBN). It marks a significant shift in the settlement process, removing banks as intermediaries and granting operators — including MTN, Airtel, Glo, and 9mobile — direct access to revenue generated from USSD services.
Prior to this reform, telcos had raised concerns about non-remittance of funds by commercial banks, despite providing over ₦200 billion worth of USSD services by the end of 2024. Banks were accused of withholding charges collected from subscribers for services rendered by telecom companies.
“Before now, banks would deduct the money from our accounts and fail to remit it to the telcos. It was always a problem,” said Adeolu Ogunbanjo, President of the National Association of Telecoms Subscribers (NATCOMS).
Under the EUB model, subscribers will now be charged ₦6.98 per USSD session, lasting up to two minutes. Charges will be deducted from airtime only after users explicitly opt in and approve the transaction.
Several banks, including GTBank, UBA, and FCMB, have already begun notifying customers of the change, in compliance with the new regime.
Ogunbanjo welcomed the shift, describing it as a “long-overdue” reform that enhances transparency and accountability in the digital financial ecosystem. He also urged telecom operators to reciprocate with better service quality: “Hopefully, the telcos will now use this to develop the telecom sector so that we won’t be having poor-quality services.”
The move follows years of dispute that began in 2019, when telcos accused banks of defaulting on payment agreements. An interim measure introduced in 2021 had required banks to collect a flat rate of ₦6.98 per session on behalf of operators — a system marred by inconsistent compliance and mounting debts.
Gbenga Adebayo, Chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON), lauded the new model, stating, “This transition marks a significant milestone in the evolution of Nigeria’s digital financial ecosystem. It aims to establish a transparent, sustainable, and customer-centric model for USSD service delivery.”
He reassured subscribers that there would be no disruption to USSD services and that existing transaction codes for balance enquiries, fund transfers, and bill payments would remain functional. Users encountering issues are advised to contact their network provider or bank, depending on the nature of the problem.
USSD remains a cornerstone of Nigeria’s financial inclusion strategy, especially for rural populations without smartphones or internet access. By aligning billing directly with subscriber consent and telco infrastructure, stakeholders anticipate stronger trust, improved user experience, and faster dispute resolution across the value chain.
A joint circular issued by the CBN and NCC on December 20, 2024, stipulates that the transition will apply only to institutions that meet regulatory requirements — including debt settlement and operational readiness.
A phased repayment plan has also been agreed upon to settle outstanding debts owed to telcos. According to the arrangement:
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Banks must remit 60% of legacy debts by January 2, 2025
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All pre-existing debts are to be cleared by July 2, 2025
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85% of new invoices must be paid by December 31, 2025
With this framework now in place, Nigeria’s telecom and banking sectors are expected to enter a new era of collaboration, marked by transparency, financial discipline, and deeper support for inclusive digital services.
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