USSD billing crisis deepens as telcos threaten withdrawal over misleading bank alerts on airtime deductions.
By Ifeanyi Eze | NIGPOST Tech Reporter
A Brewing Battle Over Banking Codes
The unassuming short codes Nigerians use for mobile banking known as USSD have become the center of a new conflict that’s stirring tension across Nigeria’s financial and telecom sectors.
What began as a silent billing policy change has escalated into a full-blown showdown,
with telecom operators threatening to pull the plug on banking services if what they call “misinformation” is not corrected.
At the heart of the crisis is the billing model for USSD services, a system that millions rely on for quick transactions.
Yet, beneath its convenience lies a longstanding war between telcos and banks a war that may now directly affect everyday users.
USSD billing crisis reignited on June 3, 2025, when Nigerian banks sent out a mass notice to customers.
The message declared that, following a directive from the Nigerian Communications Commission (NCC),
banks would no longer deduct USSD charges directly from users’ bank accounts.
Instead, charges would now be taken from users’ mobile airtime a shift under the so-called End-User Billing (EUB) model.
But within 24 hours, telecom operators under the umbrella of the Association of Licensed Telecom Operators of Nigeria (ALTON) fired back.
Their message was blunt: “We were never told to begin deducting charges directly from airtime and this is not an NCC directive.”
ALTON’s chairman, Engr. Gbenga Adebayo, said in a firm rebuttal that the banks’ notice was misleading.
According to him, the EUB model was part of a joint regulatory agreement between the NCC and the Central Bank of Nigeria (CBN), not a standalone directive.
What’s the End-User Billing Model About?
To understand the USSD billing crisis, one must first grasp how the billing system was intended to work.
Under the EUB model, each USSD session typically used for things like fund transfers,
balance checks, or airtime purchases would attract a charge of ₦6.98 per 120 seconds.
But the key difference is who deducts the money.
Banks used to subtract it from your account. Under the new model, telcos will now deduct it from your mobile airtime, but only with your consent.
A prompt will appear before each transaction, asking for confirmation. If you decline or have insufficient airtime, the transaction will not go through.
This model, as per Engr. Adebayo, was agreed upon only on the condition that all USSD debts owed by banks to telcos would be cleared before the transition begins.
The Unpaid Debt Holding Everyone Hostage
What the public wasn’t told is that this billing battle has been dragging for years.
Telecom companies have long argued that banks owe them billions in accumulated USSD service charges debts dating back years due to previously negotiated terms that went sour.
According to ALTON, only a handful of banks have cleared their debts, while the majority still owe significant sums.
Therefore, the agreed June 3 migration to the end-user billing system should not have commenced, since the debts were not fully settled.
This forms the crux of the USSD billing crisis: banks jumped ahead, announcing a system switch without fulfilling their end of the bargain.
“We May Withdraw Support,” Say Telcos
ALTON’s reaction wasn’t just a press statement it was a warning. Speaking to NIGPOST, Engr. Adebayo explained:
“If this is how the banks want to treat our agreement selectively and misleadingly we will have no choice but to withdraw our support for USSD banking services altogether.
It’s not a compulsory service. They can survive without it, but they must clear their debts first.”
Such a move would affect millions of Nigerians who depend on USSD banking particularly those in rural or low-data areas where mobile apps are not feasible.
The consequences would be far-reaching: from disrupted transactions to loss of customer trust in mobile banking.
Trust Erosion in the Digital Finance Ecosystem
This billing crisis has triggered more than just a standoff between service providers.
It has eroded public trust, especially for users who now feel unsure about who is actually charging them the bank or the telco?
The fact that billing information is not clearly explained leaves room for doubt, and in a digital economy where transparency is vital, this can be damaging.
Some customers are already deactivating USSD services out of confusion or fear of being double-billed.
Read Also:
- Artificial Intelligence Election Management Boosts Nigeria
- Digital Mapping Nigeria Urban Poor: Tech Targets Slum Poverty
Regulatory Confusion: Who Really Called the Shots?
Another cause for concern is the communication breakdown between regulatory bodies.
While the banks pointed fingers at the NCC, ALTON insisted it was a joint policy with the CBN.
Who exactly authorized the switch to the EUB model remains unclear to the public.
Worse, there’s little clarity on how disputes over debts and migration timelines will be resolved.
This lack of unified communication from regulatory authorities has further deepened the crisis.
Stakeholders Must Prioritize Consumers
At the center of this USSD billing crisis are Nigerians regular people trying to check balances or send money to family.
If both banks and telcos don’t realign quickly, users will bear the cost of broken systems, misleading alerts, and possibly, complete service outages.
Stakeholders must remember that every uncompleted USSD session is a failed transaction for a citizen.
Nigerians deserve a secure, transparent, and affordable mobile banking system, not one bogged down by boardroom politics and financial disputes.
Multiple Perspectives: Who Is Really at Fault?
The telcos’ side, the banks are evading payment and misrepresenting facts to subscribers.
The banks’ side, the switch was perhaps necessary to avoid dragging customers into the telcos’ unpaid billing drama.
From regulators, their silence has allowed chaos to spread unchecked.
And from users, the loudest question remains: “Who do we trust to bill us fairly?”
Moving Forward: What Nigerians Should Know
While the USSD billing crisis may not be over, here’s what you can do:
Monitor your airtime balance before and after USSD sessions.
Pay attention to consent prompts never authorize charges without clarity.
Use mobile banking apps where possible, especially for more detailed control.
Report suspicious double charges to both your bank and telecom provider.
If the standoff continues, telcos might follow through with their threat and millions may be cut off from the only banking method they know.
Time to Protect the End User
This USSD billing crisis shows what happens when powerful institutions prioritize profits over people.
The tug-of-war between banks and telcos cannot go on at the expense of Nigerian lives and livelihoods.
What’s needed now is clear communication, debt settlement, and a unified billing system that puts the user first.
Until then, Nigerians must remain vigilant and demand better.
Bookmark NIGPOST today for daily news updates.
Drop your comment below and let your voice be heard.
About The Author
