The Association of Licensed Telecommunications Operators of Nigeria (ALTON) has endorsed a new billing framework for USSD transactions called the End User Billing (EUB), jointly introduced by the Nigerian Communications Commission (NCC) and the Central Bank of Nigeria (CBN). The policy mandates that USSD charges be deducted directly from users’ airtime instead of from their bank accounts, effectively removing banks from the remittance chain. This shift is designed to end years of disputes between telecoms and banks over unremitted USSD service payments.
Gbenga Adebayo, chairman of ALTON, welcomed the development, expressing optimism that it would resolve the longstanding remittance impasse. He explained that under the previous system, banks collected USSD fees from customer accounts but often failed to forward the funds to telecom operators. These failures, attributed to accounting discrepancies and unreported errors, led to significant losses and friction between both sectors.
With the new EUB model, the financial responsibility now lies directly with subscribers. Once users initiate a USSD banking session, the charge—N6.98 per session—will be deducted from their mobile airtime, much like regular call or data deductions. This change is expected to bring transparency, allowing consumers to better track and manage their expenses in real-time, and to opt-in or out of the service as they choose.
The NCC and CBN emphasize that this change enhances consumer experience and resolves the legacy issues between banks and mobile network operators. They have mandated that customers must be notified before the switch is implemented. Importantly, to prevent double billing, banks have been instructed not to deduct USSD fees from customer accounts once EUB is activated, and telcos must provide end-of-activity notifications for each transaction.
Implementation of the EUB system will proceed after banks and their Value-Added Service (VAS) providers complete necessary technical tests and agreements. Customers are encouraged to contact their telecom provider for USSD access issues and their banks for any transaction-related concerns. Both the NCC and CBN have vowed to monitor compliance and enforce sanctions against any violations to ensure a smooth rollout.
Source: The Sun