The proposed migration to the End-User Billing (EUB) model for Unstructured Supplementary Service Data (USSD) services by mobile network operators has commenced on June 18, 2025. This is according to a release by the Association of Licensed Telecom Operators of Nigeria (ALTON), umbrella body for telecom companies.
The migration is in accordance with the Nigerian Communications Commission (NCC) regulatory oversight on Determination on USSD Pricing and Services, aimed at fostering a more sustainable, transparent, and customer-centric digital.
According to the Chairman of ALTON, Engr. Gbenga Adebayo, who narrated some of the challenges inherent in the old regime, “the NCC’s 2025 Determination, developed in collaboration with the Central Bank of Nigeria (CBN) and other key stakeholders, introduced the End-User Billing model. This allows mobile network operators to directly charge customers for USSD sessions, ensuring a more stable and equitable payment system.”
USSD services are critical in driving financial inclusion in Nigeria, especially for the unbanked and underbanked. However, the previous corporate billing model, where banks were charged by telecom operators, led to protracted disputes over unpaid fees, service disruptions, and customer uncertainty.
Also, subscribers are made to pay more on SMS charges after paying for the USSD service to their banks.
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 which 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. To enjoy the service, 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.
A press statement jointly signed by ALTON chairman and publicity secretary, Sir Damian Udeh, pointed out that to ensure transparency and customer awareness, the CBN and NCC have stipulated strict conditions for banks permitted to migrate.
This, ALTON explained, includes prior notification to customers about the billing change. Customers will also receive a prompt to opt-in and approve the charge before any deduction is made, eliminating the risk of unexpected costs. ALTON confirms that billing will only occur for successful sessions, preventing double charges.
ALTON noted 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 advised customers to follow these support guidelines:
- 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.
While reiterated commitment to collaborating with the NCC, CBN, financial institutions, and other stakeholders to ensure this transition is seamless, equitable, and beneficial for all parties, particularly the end-users, ALTON further reminded financial service customers of availability of alternative digital banking channels, such as mobile apps, internet banking, and ATMs
“The association remains dedicated to promoting transparency, operational efficiency, and robust consumer protection across Nigeria’s telecommunications and digital finance sectors,” it concluded in its statement.
