The Nigerian Communications Commission (NCC) has introduced a new billing structure for Unstructured Supplementary Service Data (USSD) banking transactions, placing payment responsibility directly on users through airtime deduction rather than bank account charges.
This shift to End-User Billing (EUB) means that customers will now pay for each USSD session upfront using mobile airtime, in the same manner as voice calls and SMS. The move is expected to enhance transparency and reduce billing disputes between banks and telecom operators.
Previously, USSD fees were automatically deducted from customers’ bank accounts, often without clear notifications or consent, sparking complaints of unexpected charges and lack of clarity. The arrangement also triggered long-standing tensions between banks and telecom providers over the non-remittance of USSD charges. At one point, telecom companies claimed banks owed them more than ₦200 billion in unpaid fees, threatening service disruptions that would have directly impacted consumers.
By transferring the billing to telecom platforms, the NCC hopes to end the lingering dispute and streamline payment processes. The new model also ensures that telcos receive payment directly, reducing dependency on banking intermediaries and strengthening accountability in service delivery.
