In a major shift for digital banking in Nigeria, the Nigerian Communications Commission (NCC) has introduced End-User Billing (EUB) for Unstructured Supplementary Service Data (USSD) banking transactions, allowing customers to pay directly from their airtime instead of bank deductions.
Previously, banks automatically deducted USSD transaction fees from customers’ accounts, leading to confusion and unexpected charges.
But, this regime was marred by controversies, especially of non-remittance of USSD charges by the banks to respective telcos.
At some point, the debt was in excess of ₦200 billion. If the telcos had gone ahead to disconnect banks from USSD services, the pains would have gone straight to the consumers.
Under the new model, NCC has directed that users will now pay for each USSD session upfront using mobile airtime, similar to regular phone calls and SMS services.
What End-User Billing Means for Nigerian Bank Users
- Direct Airtime Billing: Transaction charges will now be deducted from mobile airtime, rather than bank accounts.
- More Transparency: Customers will see charges before initiating transactions, avoiding hidden fees.
- Standardized Pricing: Each USSD banking session, lasting up to 120 seconds, will cost ₦6.98 per session.
- More Control: Customers can choose whether or not to use USSD services based on their preferences.
Regulatory Support & Consumer Protection
The policy, jointly approved by the Central Bank of Nigeria (CBN) and NCC, is designed to resolve ongoing disputes between banks and mobile network operators regarding unpaid USSD service debts.
The new system ensures that financial institutions no longer bear the cost burden, while consumers retain control over their payments.
To ensure a smooth transition, banks are required to notify customers in advance before implementing the new billing model.
How Customers Can Manage Their USSD Transactions
- Check Airtime Balance before Transactions: Since fees are now deducted directly from airtime, users should ensure they have enough credit before starting a transaction.
- Explore Alternative Banking Channels: Those who prefer not to use USSD can opt for mobile banking apps or internet banking services.
- Report Any Issues: If a customer experiences difficulties with USSD access, they should contact their network provider, while transaction-related concerns should be directed to their bank’s customer service team.
Impact on Nigeria’s Digital Banking Landscape
This policy marks a significant change in Nigeria’s digital financial ecosystem, creating a fairer and more efficient transaction process.
Experts believe the move will encourage greater adoption of mobile money and digital wallets, while reducing disputes over unauthorized deductions.
What’s Next?
The NCC and CBN will monitor the implementation of the USSD End-User Billing model to ensure banks and telecom providers comply with consumer protection guidelines.
Nigerians can expect continued improvements in digital banking convenience and security.
