Nigeria: NCC Confirms New USSD Billing Policy, Mandates End-User Charging via Airtime

The Nigerian Communications Commission (NCC) has formally introduced a new billing framework for Unstructured Supplementary Service Data (USSD) transactions, transitioning to an End User Billing (EUB) model that mandates the deduction of USSD charges from users’ airtime, rather than their bank accounts.

The policy shift—announced via an official notice on the NCC website—is the result of a joint resolution between the NCC and the Central Bank of Nigeria (CBN) to address persistent challenges surrounding USSD service delivery, billing transparency, and inter-sectoral disputes.

According to the NCC, the EUB framework is designed to enhance the transparency, accountability, and overall user experience of mobile-based financial services:

“With the End User Billing model, telecom subscribers will now be charged directly from their airtime for USSD transactions, just like regular voice calls, SMS, or data usage,” the Commission stated.

Improved Customer Control and Clarity

The NCC noted that under the EUB model, users will gain real-time visibility into USSD-related charges, allowing them to make informed decisions before initiating a session:

• Transparent billing: Users know what they will be charged upfront and receive instant confirmation of charges post-transaction.

• Elimination of account-based deductions: This resolves common complaints around unverified or delayed bank deductions.

• Voluntary participation: Consumers retain the option to opt in or out of USSD-based banking services as desired.

Resolution of Long-standing Disputes

The policy also aims to resolve longstanding financial disagreements between banks and Mobile Network Operators (MNOs) concerning USSD service debts—an issue that has repeatedly strained sectoral collaboration and service continuity.

“This decision—jointly approved by the NCC and the CBN—ensures a sustainable and dispute-free model for USSD delivery across Nigeria’s financial and telecommunications ecosystems,” the NCC added.

Consumer Protection Measures in Place

The NCC emphasized that both regulators have instituted necessary safeguards to protect consumer interests during the transition. Banks have already begun notifying customers of the shift in billing via email and SMS alerts, with telecom operators now handling USSD charge deductions at the point of service.

By introducing the EUB policy, the NCC reinforces its commitment to consumer empowerment, regulatory coordination, and seamless digital financial inclusion in Nigeria.