Thirteen commercial banks in Nigeria have fully cleared their outstanding debts owed to Mobile Network Operators (MNOs) for Unstructured Supplementary Service Data (USSD) services, signaling the commencement of a new billing system for USSD transactions.
The Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), Engr. Gbenga Adebayo, made this known during MTN Nigeria’s virtual session titled ‘ASK the Exec’ held on Thursday.
Adebayo disclosed that the remaining three banks have also made significant progress, with over 95 percent of their debts already settled. “As of January this year, the total debt owed by banks for USSD services stood at N180 billion. Out of the 17 banks involved — excluding Heritage Bank which is now insolvent — 13 have paid off their debts completely, while three are in the final phase of repayment,” he said.
With this resolution, a new billing structure will take effect. Moving forward, customers will be charged directly from their airtime balance for USSD transactions, instead of deductions from their bank accounts.
Speaking on the development, MTN’s Chief Enterprise Business Officer, Mrs. Lynda Saint-Nwafor, explained that the new system, known as end-user billing, brings more transparency. “Under this arrangement, customers will receive a consent message informing them of the N6.98 charge before proceeding. Once accepted, the deduction is made from their airtime, not from their bank account,” she said.
The move marks a shift from the previous corporate billing model where banks handled charges internally and often lacked transparency. Now, Mobile Network Operators will manage the billing directly, with standardized procedures across all networks.
To ensure a seamless experience, the process includes three key steps:
- Consent Notification: Customers will get a clear message asking them to approve the N6.98 deduction from airtime.
- Service Confirmation: The MNO will contact a USSD aggregator to confirm the bank’s system is available before completing the transaction.
- Transaction Completion: If the bank is ready, the MNO connects the session and charges the customer.
Adebayo clarified that any bank with remaining debt can still participate in the new model once their arrears are cleared. Alternatively, they may stay on the old system provided their obligations are fully settled.
He also assured consumers that there’s no increase in cost. “Customers have always paid the N6.98 fee — whether through bank deductions or now through airtime. So, there is no additional burden.”
For failed transactions, MNOs will not charge customers if the failure is caused by network issues on their side. However, if the failure is due to bank-related problems such as insufficient funds or downtime, the fee may still apply, with clear reasons given.
On concerns about access in rural areas or among those without airtime, Adebayo said USSD remains the most affordable banking channel. “It’s cheaper than transport fare to a bank. Also, customers can buy airtime from their bank account for free using direct USSD strings like 73710000# instead of generic codes.”
He urged customers to report any double deductions and promised monthly performance reports from telcos to regulators for monitoring.
The new billing method is part of efforts by stakeholders in the telecoms and banking sectors, in partnership with regulators, to improve transparency and ensure sustainability in delivering digital financial services.
