Telecom subscribers in Nigeria may soon start paying for USSD services directly from their airtime, as talks advance between telecom operators and deposit money banks (DMBs) on a new billing model called End-User Billing (EUB).
Under this new system, customers will be charged upfront from their airtime when using USSD codes, instead of being billed through their bank accounts after transactions. This marks a shift from the traditional corporate billing model, where banks were charged by telecom operators for the USSD platform.
Why the Change?
- N160 billion in USSD debt had accumulated over the years due to unpaid charges between banks and telecoms.
- The banks have long pushed for end-user billing to avoid these debts.
- Telcos have now agreed to explore EUB, provided the transition is smooth and systems are transparent.
According to Gbenga Adebayo, Chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON), the new system is being discussed and structured in a way that avoids service disruptions and billing errors.
What’s the Current Cost?
Right now, subscribers are charged ₦6.98 per USSD session — a rate that’s billed to bank accounts. With the shift to EUB, that same amount (or a new one) will be deducted directly from airtime instead.
Debt Recovery & Timeline
- The Nigerian Communications Commission (NCC) says banks owe telcos N160 billion in USSD charges as of late 2024.
- The CBN and NCC have jointly issued a directive:
- Banks must pay 60% of pre-2022 USSD debts by January 2, 2025.
- 85% of debts incurred post-2022 must be paid by December 31, 2024.
- Going forward, all invoices must be settled within one month.
- Only banks and telcos that fully comply with this directive will be allowed to transition to EUB.
What to Expect Next
Once fully agreed upon and implemented:
1. Airtime will be directly deducted for each USSD session.
2. Banks will no longer bill customers separately for USSD transactions.
3. The NCC will oversee public awareness efforts to guide users through the transition.
Until then, the “10-second rule” is in place — USSD sessions under 10 seconds will not be billed.
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